the mobile phone and set-top box maker looks more like an anchor than a balloon
Google intends to buy Motorola Mobility (MMI) for $12.5bn. Is it a good deal? Following the announcement of Motorola's financial results for the fourth quarter, we can take a view. From the purely financial viewpoint, the simple answer is: no.
Judging by the numbers, owning MMI will be a significant drag on Google's profits - by about 10 percentage points, making its earnings per share around one third smaller. In profitability terms, the merged company won't actually make any more profit than before. It might even make less.
Motorola Mobility (MMI) financial results since Q4 2009
Nor will being owned by Google necessarily help Motorola's profitability - unless perhaps it rebrands its phones as "Google". But even that might not help. For example, after it introduced the Motorola Droid, the first big-name Android phone in the US, in October 2009, it make a whacking loss in the mobile division of nearly $200m in each of the next quarters.
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