Google Says Less Than Half Of Motorola’s Price Were The Patents

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In August 2011 Google agreed to acquire Motorola Mobility for $12.4 billion.  Earlier this week in a regulatory filing, Google said that $5.5 billion of the $12.4 billion price tag was attributed to the patents and technology.  When Google bought Motorola, Google CEO Larry Page indicated that the acquisition would strengthen their patent portfolio and “supercharge Android.”  Google’s acquisition closed in May.

Last week when Google reported second-quarter earnings, Motorola’s results were included from a portion of the period.  Motorola contributed around $1.25 billion in revenue, but had a $233 million operating loss.

“Clearly, everybody should expect some changes at Motorola,” said Google CFO Patrick Pichette, “but we have nothing really to announce right now.”

In the filing, Google said that $2.9 billion of the purchase price was attributable to cash acquired.  About $2.6 billion was related to goodwill, $730 million was for customer relationships, and $670 million was for “other net assets acquired.”

The goodwill will be attributed to the synergies expected to arise after the acquisition.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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