Agog

Google's $12.5 billion bid for Motorola Mobility has the tech world agog with its size and strategic implications. The main attraction appears to be Motorola's portfolio of patents, rather than the mobile handset business.

Not everyone agrees that the acquisition is a wise move. Example:

Look at Google’s financial results. They reported $8.5 billion in net income this year, and $6.5 billion last year. That’s for all of Google. They’re offering $12.5 billion for Motorola. So Google just spent almost two years of its profits to buy a second-rate phone maker that itself is unprofitable, almost went bankrupt, and is arguably only the third-best maker of Android devices, behind HTC and Samsung.

After meandering downward since January, GOOG's shares took off at the end of June with the announcement of Google Plus, Google's answer to Facebook. The Motorola move resurrects the old doubts for conservative investors like your humble servant. I sold my modest stake a couple of months ago, was thinking of getting back in, but now will hold off.