This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Big Question About Google's Motorola Acquisition

So there are two remaining categories of Motorola businesses:

3. Stuff that's not obvious but also not implausible for Google to integrate/keep. This includes the set-top box business. Historically, this has not been a Google type of business. But you could conceive of a scenario where it could be. Hey, Google TV is one step in this direction. In other words, Google could go in either direction. The main competitors in this business are Cisco (CSCO) and U.K.-based Pace Micro.

4. Stuff that Google most likely doesn't want and shouldn't. This includes the infrastructure equipment businesses, primarily geared to cable TV operators. This is fiber-optic distribution gear that you hang on poles connecting every Joe Six Pack in the U.S. and beyond. This type of business is a culture shock for Google.

You can easily envision Google divesting some of Motorola's businesses.

But the obvious question Google must answer is whether it integrates the Motorola Android business or gets rid of it. The current official answer of keeping it "separate" makes no sense at all. Google isn't a passive investment fund. Something's gotta give.

At the time of submitting this article, the author was long AAPL and GOOG, and short MSFT.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
GOOG $565.06 0.00%
FB $81.53 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs