Motorola has been undergoing significant "restructuring" for awhile, and Google recently said that even more than expected. Google increased the estimated cost of severance-related charges from $275 million to $300 million for the third quarter, and that another $40 million in facilities costs were possible. Google addressed these changes in a statements.
"Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the U.S. ... 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."
Between the uphill battle of making Motorola profitable and the patent disputes that it has exposed Google to (nevermind defended them from), it's getting harder to see the $12.5 billion acquisition as a good idea. On the other hand, Motorola wasn't in particularly good shape when Google acquired it; one can only imagine how much longer Moto would have lasted on their own.
What do you guys think: has Motorola still not had a chance to prove itself as a worthwhile investment to the Android ecosystem, or is it becoming too expensive for Google to reasonably keep around? Was the acquisition worth it for the patents alone, or are we likely to see some really excellent devices come out of Motorola with Google behind them?
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