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Motorola patents are apparently worth $5.5 billion

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Motorola patents are apparently worth $5.5 billion
For everyone who wasn’t living under a rock last year, one of the biggest stories of the summer was Google’s surprise acquisition of Motorola Mobility, the mobile phone and set-top box company that had been spun off from Motorola proper. There was lots of speculation about the role that patents played in the purchase (hint: a lot), but it wasn’t clear exactly how valuable Google thought those patents were. Now thanks to an SEC form released this week, we have a much clearer picture of how Google views the purchase.

Not surprisingly, patents are the biggest slice of the pie – Google valued “patents and developed technology” as commanding $5.5 billion of the $12.4 billion price tag. Still, that leaves more than half of the purchase price remaining, and it’s interesting to see how Google values those parts, some of which are intangibles. Google attributed $2.9 billion to Motorola’s cash on hand, but almost as much ($2.6 billion) to “goodwill”.

What goodwill would that be? According to the filing, this goodwill is “primarily attributed to the synergies expected to arise after the acquisition.” So apparently Larry Page wasn’t just blowing a smokescreen when he said they want to supercharge Android with Motorola’s hardware – they really are expecting to generate enormous revenue increases from teaming up with the U.S. hardware manufacturer.

To round out the rest of the purchase, the Form 10-Q cited acquired value of $730 million for customer relationships, and an additional $670 million for “other net assets acquired”. Most of this seems fairly standard, but that’s quite a lot of goodwill that Google believes they will reap from the purchase down the road. If that’s the case, we can expect to see some bold moves with Motorola in the coming years.

What would you like to see Googerola do?

source: Google's Form 10-Q via 9to5Google

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1. blazee posted on 25 Jul 2012, 11:31 13

I would like them to release a nexus phone

2. smdeezy posted on 25 Jul 2012, 11:34 8

Sometime soon too!

3. PhoneArenaUser posted on 25 Jul 2012, 11:36 4

I also.

9. Ohrules posted on 25 Jul 2012, 13:45 4 1

nexus phones are already great. imagine how cool would a nexus be if it was built solely by Google

14. zhypher_23 posted on 25 Jul 2012, 23:53

Me 4.

4. Aeires (unregistered) posted on 25 Jul 2012, 11:48 7

If they can be used as leverage to stop all the endless patent wars, they'd be considered priceless.

5. Birds posted on 25 Jul 2012, 11:54 2

Considering that, I see why apple would rather sue then play nice. lol

6. networkdood posted on 25 Jul 2012, 12:41 4

Moto Nexus will be out in late 4Q 12/ 1Q 2013....gonna sell like them hotcakes :0)

7. omacmagics posted on 25 Jul 2012, 12:45 2 5

Not a big fan of Motorola phones due to there hideous once then Moto blur skin and there camera humps. Now with Google at the helm I'll buy a Nexus Motorola if the phone is streamlined nicely, a 3000+ battery, quad core love, great GPU for gaming like what the Nexus 7 has and pure android OS. Did I miss anything?

8. cptbeatstix posted on 25 Jul 2012, 13:30 1 3

You missed that part where the majority of people using phones don't need a ridiculous GPU (not that I would complain) for gaming since only a small portion of cellular users are gamers (on a phone gaming.) There really is no reason to have a quad-core, but meh that's just my point.

12. SonyFTW2020 posted on 25 Jul 2012, 20:33 2

people need to stop fooling themselves into thinking you need a quadcore just to have a great gaming experience, dual core krait and a good amount of memory (16gb or 32gb) is all you will need for some time to come ...

10. Jimstar posted on 25 Jul 2012, 15:03 3

the sad part is, aside from the fact you can't distinguish "there" from "their" is that the Tegra3's GPU isn't even that impressive anymore. Hell there are last generation A9 dual core SoC's with higher performing GPU's

11. denied911 (banned) posted on 25 Jul 2012, 15:38 1 1

my sgs3 has better gpu so what?
tegra 3 is still good enough for this year
next year next tegra

13. Jimstar posted on 25 Jul 2012, 21:24 1

Never said it wasn't. Way to miss the point

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