Google Breaks Down Why it Bought Motorola -- And Downplays Patents
July 25, 2012 2:39 PM
comment(s) - last by
Google is promoting synergy (like a boss).
Surprisingly, Google says that cash and "goodwill" were also big drivers
Google Inc. (
surprised the tech world last year
with its decision to scoop up struggling veteran devicemaker Motorola Mobility, Inc. -- one of the "big three" of the Android world. Some figured that Motorola's "war chest" of over 17,000 patents amounted to nearly the entire $12.5B USD valuation Google made in its successful purchase bid.
Traditionally, Google did not look to patent its software innovation at the same pace as rivals Apple, Inc. (
from Oracle Corp. (
) directly targeting Google and with Apple
turning up the lawsuit pressure
on OEMs, many felt Google needed to buy the patents to defend itself and its partners.
regulatory filings Google says the patents represented less than half the valuation.
Google's breakdown of Motorola's worth is as follows:
For those curious what exactly Google means by "goodwill", the company elaborates slightly that it is "primarily attributed to the synergies expected to arise after the acquisition."
However, Google has left just about everyone in the dark as to exactly what those "synergies" might be. During its earnings call, it did not discuss its long-term strategy or plan for Motorola.
completed the acquisition
in May, after Chinese regulators finally stopped dragging their heels on approval. U.S. and European antitrust regulators approved the acquisition
One thing is for sure; whatever Google's secret "synergies" may be, they have yet to take hold. Motorola Mobility made $1.25B USD in revenue in the second calendar quarter, but lost $233M USD, once operating expenses were taken into account. Google still managed to
earn $2.79B USD
, though, despite that hardship.
This article is over a month old, voting and posting comments is disabled
7/26/2012 11:57:07 AM
I really doubt that Google gives a rat's ass about the Motorola name and I don't think they are even going to keep the Motorola brand around. There's more to good will that just good name. The goodwill value of Motorola is their business capacity to design and manufacture phones and tablets. The assembly lines are just commodity machines and are only worth so much but the human capital and organizational value of a working company that can design and build whatever is what makes any company valuable.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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