- February 14, 2014
Real Reason Google Bought Motorola: R&D
Google bought Motorola Mobility for $12.5B, but here is what Google gained in the process:
1. $3.2B – Motorola had in cash
2. $2.4B – Saved in deferred tax assets
3. $2.5B – Selling off the cable and set top box business in 2013
4. $2.9B – Sale of the handset hardware business to Lenovo
= $11B total gain from the acquisition 22 months ago (and before selling to Lenovo)! Therefore, instead of a supposed $10 billion loss on the purchase of Motorola Mobility, they actually wound up paying only $1.5 billion for what it retained $5.5 billion worth of Motorola patents and their research labs!
What are your thoughts?