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Google Says Almost Half of the Motorola Purchase Price was in Patents


Google Inc. said that less than half of the $12.4 billion it paid to acquire Motorola Mobility Holdings Inc. was all devoted to patents and technology. Out of the $12.4 billion, $5.5 billion was devoted to patents and “developed technology,” according to what Google wrote in a document with the U.S. Securities and Exchange Commission yesterday. $2.6 billion was also devoted to goodwill, which Google said was a financial benefit they expect to receive from the acquisition.


$5.5 billion in patents and “developed technology” is a lot of money for patents. Keep in mind that they did just purchase Motorola Mobility which has more than 17,000 patents. I’ve never had any history in business but I’m almost positive that $5.5 billion may be worth it in the long run. This is all helping Google enter the hardware market to help compete with the school bully, Apple Inc. All of these new patents will help them combat legal actions taken against the Android operating system.

“The acquisition is expected to protect and advance our Android ecosystem and enhance competition in mobile computing,” Google said in the document.
Google also said that $670 million was devoted to other assets while $730 million reflected customer relationships.
I like the idea of Google entering the hardware market. The Nexus Q is really cool and if not for the price, I think we’d all like to have one in most of the rooms of our homes. What do you think of Google entering the hardware market? Let us know in the comments below!

Source: Bloomberg

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