Jobs Lost Through Google Acquisition Will Likely Cost Motorola About $31 Million
As Google Inc. (NASDAQ:GOOG) prepares to acquire Motorola Mobility, the telecommunications company is going to dispose of about 800 jobs. This will cost Motorola $27 million pretax in severance and $4 million pretax in facility closures according to a regulatory filing. Google is spending $12.5 billion to buy-out Motorola Mobility.
“Motorola Mobility continues to focus on improving its financial performance by taking actions to manage the company’s costs,” stated Motorola Mobility spokeswoman Jennifer Weyrauch-Erickson. However Weyrauch-Erickson said that these efforts are not related to the Google acquisition.
Google plans to use Motorola’s patents to protect Android in licensing disputes. There are about 17,000 patents in Motorola’s portfolio.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry