Google 'Plans To Make Substantial Investment' In Motorola's Phone Business, Not Sell It

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Photo: exfordy via Flickr

The Wall Street Journal has a good story on Google insiders, as well as Motorola insiders struggling to figure out what Google is going to do with Motorola.Buried at the bottom of the story is this nugget:

There are already reports that Google is sizing up the cable set-top box business for sale. From Asia, rumours have swirled around the handset business, suggesting that Google has already offered it to China’s Huawei at a high price.

This has caused Gizmodo and others to speculate that Google was going to sell Motorola.

The only problem? The next sentence from the Journal:

A person close to Google denies any such talks around handsets.

Companies lie all the time, and this sounds like it’s a PR person talking on background. So, it makes sense to brush it off.

However, this part of the Journal’s story does not sound like a PR person:

Hairball or no, people close to Google say it plans to make substantial investment in Libertyville, Ill.-based Motorola, whose share in smartphones is languishing at around 4%. The goal, these people say, is to build truly innovative devices, which the company realises will take both money and talent.

We believe this more than the rumour out of Asia. Investors ought to believe it too. It’s scary.

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