Quote:
Originally Posted by murraypaul
The problem with selling it is that wouldn't get back anywhere near what they paid (as the main value is patents, and they paid a significant (60%+) premium over market price), and would have to book a loss on that. Take away the patents and the cash, and how much is the Motorola handset business worth?
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My thinking is that they made the deal for the patents ONLY. Selling the hardware business to some Chinese company (who desperately wants the development know-how and marketing connections --- to Verizon, etc --- and gets government money for the deal) would recoup a significant part of what they paid for the whole company in the first place. At the same time they would get rid of the headache of running a business based on selling hardware (not their thing at all) and maintain a good relationship with their current partners. Let us face it, if they keep making phones and tablets it is a catch 22. If they do well and make money, then their Android partners won't be happy. If they don't, why keep it?
So even if no low-end phone manufacturer is willing to pay a good price perhaps HTC, LG, or Samsung would? In the end, anything they can get for the hardware part would be a good deal for them.