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Google purchased Motorola's patents for $5.5 billion

Google paid a $7bn premium to acquire Motorola's patents according to a new SEC filing

| Business, Financial & Legal News | Posted: Jul 25, 2012 5:38 pm

Think back to that deal closed back in May when Google acquired Motorola Mobility for $12.4 billion. Well, in an SEC filing, Google explains just how it valued Motorola's worth and in that we find that Google valued "patents and developed technology" at $5.5 billion, the largest portion of the acquisition.

 

TweakTown image news/2/5/25009_1_google_purchased_motorola_s_patents_for_5_5_billion.jpg

 

Other amounts of money were much smaller than the $5.5 billion: $2.9 billion of the purchase price for Motorola's cash, $730 million went to customer relationships, and $670 million to other net assets. The remaining $2.6 billion was for goodwill, or the value of the company above and beyond its assets.

 

Google from the beginning has said that the acquisition was to acquire the patents that Motorola held. It would appear that they wanted the patents so much that they were willing to pay a $7 billion premium to get their hands on them. Google reported Motorola's financials for the first time last week and they contributed over $1.25 billion to revenue. However, the mobile firm reported a $233 million operating loss.

NEWS SOURCE
News.cnet.com

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