 GooberPremium
join:2000-12-17
Naperville, IL
kudos:5
 ·Dish Network
| reply to fifty nine
Re: Wonderful news They don't want to be in manufacturing. I guarantee that they'll spin of all the manufacturing part of the business. Of course, Google will put into place licensing and supply deals to push their wares. But, they won't go into manufacturing. It's not high margin enough.
I was here at Mot when the GI acquisition was made. It's not an easy or high margin business. Of course, neither is the handset one. Why do you think Qualcomm dumped their handset business. They've been better off for it. I doubt Google has the desire to be in manufacturing.
This is all really about the IP. |
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| said by Goober:They don't want to be in manufacturing. I guarantee that they'll spin of all the manufacturing part of the business. Of course, Google will put into place licensing and supply deals to push their wares. But, they won't go into manufacturing. It's not high margin enough.
I was here at Mot when the GI acquisition was made. It's not an easy or high margin business. Of course, neither is the handset one. Why do you think Qualcomm dumped their handset business. They've been better off for it. I doubt Google has the desire to be in manufacturing.
This is all really about the IP.
I think it's about the IP too. I also doubt Google wants to get into manufacturing.
They could do this two ways - outsource the manufacturing or spin off the manufacturing division. You're right the latter does seem more feasible than the former. |
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GooberPremium
join:2000-12-17
Naperville, IL
kudos:5 | I agree. One of those two things is the most likely scenario for the manufacturing side. But, like you said in an earlier post, there's very little doubt that they'll somehow push Google TV into STBs. |
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| reply to Goober
said by Goober:They don't want to be in manufacturing.
This is all really about the IP.
Which is why the US patent system is horribly broken. Billions upon billions in corporate capital wasted in hoarding patents to defend oneself. Software patents have caused so much waste in US business it's enough to make you depressed.
$12 billion is a huge amount of money. Google could build FTTH out to a significant fraction of US urban areas. Or buy some spectrum and build out DIDO wireless systems across America.
Watching them forced to waste money like this is just a blow to one's morale. |
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GooberPremium
join:2000-12-17
Naperville, IL
kudos:5 Reviews:
·Dish Network
| said by sonicmerlin:said by Goober:They don't want to be in manufacturing.
This is all really about the IP.
Which is why the US patent system is horribly broken. Billions upon billions in corporate capital wasted in hoarding patents to defend oneself. Software patents have caused so much waste in US business it's enough to make you depressed. $12 billion is a huge amount of money. Google could build FTTH out to a significant fraction of US urban areas. Or buy some spectrum and build out DIDO wireless systems across America. Watching them forced to waste money like this is just a blow to one's morale. $12B gets them over $3B in cash, disposable manufacturing assets probably worth over another $3B, etc. In the end, I bet Google doesn't pay much more than $4-5B for the patents. And, it's a much better portfolio than Nortel's.
On a personal level, I like the patent system. Yeah, parts of it need to be fixed, but it's been very good to me. |
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 jester121Premium
join:2003-08-09
Lake Zurich, IL | reply to sonicmerlin
said by sonicmerlin:Which is why the US patent system is horribly broken. Billions upon billions in corporate capital wasted in hoarding patents to defend oneself. Software patents have caused so much waste in US business it's enough to make you depressed.
Silliness. You make it sound like the "billions upon billions" were flushed into a black hole and disappeared. Economics is all about moving money around, and wherever it ended up it was used for something. |
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