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Google revises cost of Motorola Mobility restructuring

Those patents better hold up
Thu Oct 04 2012, 14:59
Motorola Mobility headquarters logo

ADVERTISING BROKER Google has increased its cost estimate for restructuring Motorola Mobility.

Google's $12.5bn buyout of Motorola Mobility was not only expensive but left Google with the task of integrating its new acquisition into its existing corporate structure and practices. The firm had previously announced that it will cut Motorola's workforce by 20 percent, and now it has revised upwards its figures for severance charges by nine percent to $300m.

Motorola was bought for its considerable patent portfolio, with Google hoping that the 16,000 or so patents will help it fend off potential patent lawsuits by other firms like Apple and Microsoft. However Google bought not only 16,000 patents but also a company that was far from being the mobile phone market leader, with financials to match its lacklustre products.

Google said in a statement to Reuters, "Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the US."

The company repeated that further restructuring, effectively job cuts, could be on the horizon by adding, "Motorola continues to evaluate its plans and further restructuring actions may occur, which may cause Google to incur additional restructuring charges, some of which may be significant."

Google's influence on Motorola Mobility's handset division has yet to be felt. However Google's next reference Nexus design scheduled to tip up sometime in the next four months, and that could be the first time analysts gain some insight as to whether Google paid $12.5bn for patents and whether it is interested in the hardware side of the business. µ

 

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