In case you think all Google is buying in the Motorola deal is a bunch of patents, think again.Google’s also getting a massive, low-margin, commodity hardware business that owns factories and distribution facilities around the globe.
How many factories? Where are they located? And what other stuff is Google getting? And where?
Here are some details from a recent SEC filing:
- Motorola Mobility’s principal executive offices are currently located at 600 N. U.S. Highway 45, Libertyville, Illinois 60048. Interesting. How many Googlers are going to move from Silicon Valley to run the business? Who? Are they going to get free food, like the rest of Google? Google stock options?
- Our Home business headquarters is currently in Horsham, Pennsylvania. The “Home” business makes set-top boxes. Are the Google TV folks moving to PA?
- Motorola Mobility also operates manufacturing facilities, research and development, administrative and sales offices in other U.S. locations and in many other countries… Motorola Mobility owns eight facilities (manufacturing, sales, service and offices), five of which are located in the Americas Region (U.S., Canada, Mexico, Central America and South America) and three of which are located in other countries.
- A Motorola/Google factory somewhere in Brazil.Motorola Mobility leases 91 facilities, 36 of which are located in the Americas Region and 55 of which are located in other countries.
- Motorola Mobility owns three major facilities for the manufacturing and distribution of its products. These facilities are located in: Tianjin, China; Hsin Tien, Taiwan; and Jaguariuna, Brazil.
- A substantial portion of Motorola Mobility’s products are manufactured in China, Taiwan, and Brazil, either in our own facilities or in the facilities of third-parties who manufacture and assemble products for us. If manufacturing in the region or by the small number of third-party suppliers and manufacturers who make a significant portion of our products were disrupted, Motorola Mobility’s overall production capacity could be significantly reduced.
In other words, Google is going from having never manufactured anything to owning or leasing about a hundred factories around the world manufacturing products built from a global supply chain.
This should be interesting.
Can you say “culture clash”?