The market is trying to make sense of Google's $12.5 billion agreement to buy Motorola Mobility. (Google shares are down 2.8 percent in midday trading to $548, while Motorola shares are up nearly 60 percent.) Citi analyst Mark Mahaney, for one, thinks it is a "defensive" move. In a research note he put out today after the announcement, Mahaney takes a skeptical view of the all-cash deal. "This may not be a bad use of cash," he writes. "But is this GOOG?s best use of cash?" Mahaney worries what the impact might be on the Android ecosystem as a whole. Android has so much momentum already with 150 million handsets worldwide, why risk slowing that down with the distractions of absorbing one of the leading Android manufacturers?
Monday, August 15, 2011
Citi Analyst: Google?s Motorola Move Is ?Defensive?
The market is trying to make sense of Google's $12.5 billion agreement to buy Motorola Mobility. (Google shares are down 2.8 percent in midday trading to $548, while Motorola shares are up nearly 60 percent.) Citi analyst Mark Mahaney, for one, thinks it is a "defensive" move. In a research note he put out today after the announcement, Mahaney takes a skeptical view of the all-cash deal. "This may not be a bad use of cash," he writes. "But is this GOOG?s best use of cash?" Mahaney worries what the impact might be on the Android ecosystem as a whole. Android has so much momentum already with 150 million handsets worldwide, why risk slowing that down with the distractions of absorbing one of the leading Android manufacturers?
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