NEW YORK (TheStreet) -- It's been over a year since search giant Google (GOOG) paid an estimated $12.5 billion to acquire Motorola Mobility (MMI). In addition to securing a portfolio of valuable hardware patents, the move was supposed to allow Google to improve its competitive position against (among others) hated rivals Apple (AAPL) and Microsoft (MSFT) in the race toward smartphones and tablet supremacy.Except, it has not worked. And on the heels of the company's third quarter earnings report, investors are beginning to wonder if it ever will.
That Google has since entered plans to divest Motorola's home business unit has now introduced concerns as to whether or not paying also $13 billion for Motorola was worth it. This is the group which includes set-top boxes and home networking. Google is expecting the sale of the unit to generate approximately $2 billion. The decisions comes after rounds of job cuts and other cost saving measures that failed to produce the bottom line impact that Google once enjoyed in terms of profits.