CHART OF THE DAY: This Is The Business Google Just Bought

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Google is paying $12.5 billion in cash to land Motorola Mobility. What exactly is it getting for all that cash?

Well, there are patents. Lots and lots of patents — 24,500 to be precise. Those will be useful for protecting Android from lawsuits brought by Apple and Microsoft.

Other than the patents … Google is getting an old school manufacturing business that has really crappy margins. Google earns almost as much in profit on a quarterly basis as Motorola generates in revenue. ¬†Below you can see the tepid sales growth from Motorola and the equally weak operating income.

This is the business Google will own, if the deal is approved. It’s a whole new world for Google, and it could be a disaster.

chart of the day motorola

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