Google Owned Motorola Mobility Says Q4 Profits Were ‘Modest’
Motorola Mobility who was recently acquired by Google for a whopping $12.5 Billion, released results from Q4 2011. The company continues to do exceptionally well with estimated sales of $3.4 Billion in the final three months of 2011.
When it came to the company’s sales, they stated them and with “modest profitability”. The company failed to mention any revenue gain, though did share how many devices were sold. Approximately 10.5 Million mobile devices were sold in Q4, 5.3 Million of which ended up being smartphones.
Aside from not talking about profits, the company did hint at a potential decrease in profits by saying, “fourth-quarter results were impacted by the increased competitive environment in the Mobile Device business and higher legal costs associated with ongoing Intellectual Property (IP) litigations.”
Sales of the home business were approximately $900 Million. Regarding their acquisition by Google:
“As previously announced on August 15, 2011, Motorola Mobility and Google Inc. (“Google”) (NASDAQ: GOOG) entered into a definitive agreement for Google to acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion. On November 7, 2011, Motorola Mobility stockholders voted overwhelmingly to approve the proposed merger with Google at the Company’s Special Meeting of Stockholders.”
While some assume that the deal already went through, that’s actually not the case, though is expected to go through.
“The Company continues to work closely with Google to complete the proposed acquisition of Motorola Mobility as expeditiously as possible. The Company notes that the transaction remains subject to various closing conditions, and currently expects the transaction to close in early 2012 once all conditions have been satisfied.”