Re: arbitrage on mmi deal
Value Hiker
5/19/2012 6:46:40 PM
More fun with patents...
A US JURY has found that Google's Android infringes Oracle's copyrights on Java APIs, in the first stage of a high-stakes court battle between the two companies. The verdict reached on Monday handed Oracle a partial victory in the first phase of its three-part trial against the internet giant. The jury in US District Court in San Francisco was charged with four questions about copyrights in Java code used in Android.
@Noreen,
Nice find. That's a big one! I missed it...
A German court ruled on Wednesday that Microsoft infringed Motorola Mobility's patents in making its Xbox gaming consoles.
Judge Holger Kircher said Microsoft breached an agreement with Motorola, which is in the process of being bought by Google, by applying certain video-compression software in products including Windows 7 and the Xbox 360 videogame console. In the ruling, the judge ordered Microsoft to remove its popular game console as well as its Windows 7 operating system software from the German market.
Re: arbitrage on mmi deal
Value Hiker
5/2/2012 2:20:05 PM
People likes to compare the PC era with mobile Internet era. But history never repeated itself in the exact same pattern. Google is not Microsoft, Arms is not Intel, and Apple is not old Apple.
I am neutral about possible vertical integration between Google an MMI. MMI is a mediocre company in management and execution, but it is in the hotest areas of mobile internet industry: mobile handset, set top box, home connection. If Google does the right thing, it will open many big growth areas for Google's future. But we all know Google never made any real profit from dozens of its acquisitions. That is what many investors worried about.
Samsung is not the Dell or HP of PC era. Its market share dominated the Android camp, surpassed both Nokia and Apple. Furthermore, it dominates the compoents market of mobile handset, both Android and iOS=> Samsung makes about 25% of iPhone's components.
The only missing part of Samsung's vertical integration chain is a great OS. After seeing how Amazon hijacked Android with Kindle Fire, Samsung started to work very hard on its own OS now. Once it is done, Samsung will become another Apple, no matter Google integrated MMI or not.
It is a hard choice for Google, hope Google make the smart move.
@ Value Hiker
Yes I undertand your points. They need the patents. I also believe Android is in danger. Perhaps they think the only solution is to roll it up into one vertically integrated franchise, a la Apple. However I think that's dangerous for Google it is a completely different model.
For example, imagine what had happened to Microsoft if it had bought Dell or Intel?
I think the best outcome for Google investors is if they gain control of the patents and them somehow spin off the hardward business as an independent entity. I don't think integration will go well.
Re: arbitrage on mmi deal
Value Hiker
5/1/2012 12:11:45 PM
@Scott, you are right that investors hate shrink margin. But in Google case, investors matter little to the management team. Why does Google have a dual class stock structure? Just for case like this.
Larry Page, Sergey Brin, and Eric Schmidt have more voting power than the rest of all other investors. They are free to make any decision they like. The acquisition of MMI was approved by the Big Three.
As I said in my previous post, I don't think Google has other options after it failed to bid the Nortel Patent sale. Google will lose the Android platform if it loses the MMI patent portfolio. Investors may not like the ideal of acquiring MMI, but will they like the idea of losing Android?
@Value Hiker
Sorry if I've forgetting something big... When's the last time the Chinese government on a big tech deal in the United States?
I also strongly disagree with the statement that this is the "only risk." Google is a software company with high margins. investors hate shrinking margins. If it really does embed a hardward company, a lot could change.
Re: arbitrage on mmi deal
Value Hiker
5/1/2012 11:34:01 AM
The only real risk to the Google and MMI deal is the antitrust investigation from Chinese Government. Any one in the mobile industry long enough knows the deal does not present a monopoly risk. But the relationship between Chinese government and Google is so resentful, I am sure Chinese Government will delay the deal and teach Google a lesson. Hope the good relationship between Motorola and Chinese government will save it deal at the end.
Re: arbitrage on mmi deal
mInvestor
4/30/2012 11:29:21 PM
Maybe you are right. But sometimes Chinese companies have their agenda. So it's interesting to see how things play out.
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