Lot of people are fixated on just the financials of the deal while ignoring the alternatives.
Remember back before Google buying them, Motorola was doing even worse than they do today. In addition, CEO Sanjay Jha was talking about suing other Android OEMs for patents. If Microsoft / Rockstar type arrangement would've ended up bidding for Moto's patent portfolio and optionally phone lineup OR if another Android OEM had bought them outright - it would be a far worse outcome for Google. In the worst case there would be one less Android OEM and yet another patent abusing entity for other Android OEMs to worry. In the best case Moto's patents would be held by single Android OEM without any incentive for them to license those to other OEMs, leaving yet another hole in the patent situation.
So strategically Google came out better off at the expense or 2/3Bn USD. They get to keep the patents, license them as needed, Moto brand continues to exist, Google keeps the Moto R&D group and it levels out the Android OEM market further buy strengthening a player such as Lenovo with their wider market reach. And while they were owning Moto, I think they improved the company by making them focus on smaller number of higher quality/unlocked/up to date phones at an affordable price and distinguishing features.
Remember back before Google buying them, Motorola was doing even worse than they do today. In addition, CEO Sanjay Jha was talking about suing other Android OEMs for patents. If Microsoft / Rockstar type arrangement would've ended up bidding for Moto's patent portfolio and optionally phone lineup OR if another Android OEM had bought them outright - it would be a far worse outcome for Google. In the worst case there would be one less Android OEM and yet another patent abusing entity for other Android OEMs to worry. In the best case Moto's patents would be held by single Android OEM without any incentive for them to license those to other OEMs, leaving yet another hole in the patent situation.
So strategically Google came out better off at the expense or 2/3Bn USD. They get to keep the patents, license them as needed, Moto brand continues to exist, Google keeps the Moto R&D group and it levels out the Android OEM market further buy strengthening a player such as Lenovo with their wider market reach. And while they were owning Moto, I think they improved the company by making them focus on smaller number of higher quality/unlocked/up to date phones at an affordable price and distinguishing features.