Google's $12 Billion Motorola Gamble: The Reasons Why It Will Pay Off

Wed, 05/23/2012 - 14:10 EDT - Seeking Alpha

By Tim Plaehn: The purchase of Motorola Mobility (MMI) by Google (GOOG) is finally official with Google officially announcing the completed acquisition yesterday, May 22. The purchase - announced in August 2011 - took Saturday to receive all of the necessary approvals. Now the big question is what will Google do with a tech hardware company and can it be successful?You will find a lot of written opinions on whether or not the purchase is a good deal for Google. I want to discuss some different aspects of Google and its move into the hardware business.Google is a tremendously profitable business. In 2011, the company generated net profit of almost $10 billion on $38 billion worth of revenue. Over the last three years - including recession marred 2009 - Google's sales increased by 72% and profits more than doubled. However, the company's revenues are primarily online advertising from Google.com - 69%Complete Story »

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Google's $12 Billion Motorola Gamble: The Reasons Why It Will Pay Off

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