Source: CNBC
Summary
Shardul Shah of Index Ventures analyzed Google’s acquisition of Motorola Mobility, its largest acquisition to date. The deal, worth $12.5 billion, was announced in 2011 and closed in 2012. Shah walked through the events leading up to the acquisition and its aftermath. According to Shah, Google’s primary motivation was to acquire Motorola’s patent portfolio. The deal ultimately led to Google selling Motorola’s mobile division to Lenovo in 2014.
Our Reading
The announcement sounds ambitious.
Google’s largest acquisition ever, and we’re still talking about patents. Motorola’s mobile division was sold off, but the patents remained. Because that’s what really matters. The deal was worth $12.5 billion, but the real cost was Google’s reputation as a hardware maker. Shardul Shah’s analysis is a reminder that even the biggest deals can have unexpected consequences.
Author: Evan Null
