Motorola has never been well run. Google wants the patents not the operating company. Not likely to walk away since difficult to fight Apple/Microsoft patent cartel without serious patent ammo. Google is acquiring some patents elsewhere, but not nearly enough.
Not sure what endgame is for hardware company. Samsung and others may bendover and make crappy Windows phones to settle patent battles. Would be nice to have an independent source of Android phones that do not bow to the cartel.
If the market is left to Apple/Microsoft then eventually the world will only be allowed to run cartel approved APPs with royalties paid to Micrsoft/Apple on each sale.
Google also is concerned about growing market for mobile search. If all Cellphones come from cartel members, then Google could eventually be locked out of the mobile search market. Therefore, there is a critical strategic interest in protecting Android for Google.
Everything you said is valid and factual, and I could make the same parralel arguments about the teams in the NFL that are playing today. But at the end of the day, it's the oddsmakers in Vegas and the ebb and flow of money that make the call on the money-side of sports betting in the WildCard playoffs. And now we look at MMI shares, the buy-out is a flat $40.00 All Cash, a tidy chunk 2.5 Billion if Google backs out, so we know they're serious. And yet, the stock continues to fall, the annual rate of return is exceeding 10%, what is the smart-money saying? You and I are sitting on our couches in Omaha or where-ever and the smart money is selling to the arbs and leaving over 10% on the table (annualized) for the arbs....an admittedly ridiculous sum in a 0.40% world of short-term capital. Something ain't right here, something is VERY wrong.