Google Paid $5.5 Billion For Patents In $12.4 Billion Motorola Deal

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Here’s some new piece of information was revealed about Motorola Google Deal. Today Larry Page wrote on Google’s blog that worth $12.4 billion Motorola deal, $5.5 billion was for Patents. Check out the official wordings from Larry page:

Many users coming online today may never use a desktop machine, and the impact of that transition will be profound–as will the ability to just tap and pay with your phone. That’s why it’s a great time to be in the mobile business, and why I’m confident Dennis and the team at Motorola will be creating the next generation of mobile devices that will improve lives for years to come.

The rest of the $12.4 billion was broken down to $2.9 billion for cash acquired, $730 million for customer relationships, $670 million for net assets, and $2.6 billion as a gesture of goodwill, which relates to “the synergies expected to arise after the acquisition.”

According to SEC filings:

“Under the transaction, we acquired all outstanding common shares of Motorola for $40 per share and all vested Motorola stock options and restricted stock units, for a total purchase price of approximately $12.4 billion in cash.

In addition, we assumed $401 million of unvested Motorola stock options and restricted stock units, which will be recorded as stock-based compensation expense over the weighted-average remaining service periods of approximately 2.9 years. Transaction costs were approximately $50 million, which were recorded as general and administrative expense as incurred.

The fair value of assets acquired and liabilities assumed was based upon a preliminary valuation and our estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price that are not yet finalized are related to certain legal matters, income taxes, and residual goodwill.

Of the $12.4 billion total purchase price, $2.9 billion was cash acquired, $5.5 billion was attributed to patents and developed technology, $2.6 billion to goodwill, $730 million to customer relationships, and $670 million to other net assets acquired.”

Now we really come to know where and why this whole money go.

Source: WSJ