Google: Nearly half of Motorola value stems from patents
updated 02:47 pm EDT, Wed July 25, 2012
SEC filing shows $5.5 Bn of $12.4 Bn Moto price covered patents
Almost half of Motorola Mobility's value lies in its patents, according to Google's estimates. The search giant recently submitted a SEC filing claiming that $5.5 billion of the $12.4 billion price it paid for the mobile firm was attributed to "patents and developed technology." A further $2.9 billion went towards Motorola's cash reserves, $730 million on customer relationships, $630 million on net assets, and $2.6 billion for goodwill.
The purchase of Motorola Mobility was seen as a way for Google to directly control part of the Android hardware market, as well as to use the newly-increased patent portfolio to protect Android from infringement lawsuits. Motorola contributed $1.25 billion in revenue to Google's accounts for the second quarter, although it posted a $233 million operating loss for the period.
Motorola continues to fight long-running patent-infringement battles in court. Probably the most noteworthy, the Apple vs. Motorola suit presided over by Judge Richard A. Posner, has seen a number of arguments from the parties involved, although it was dismissed entirely after both sides failed to prove they had been materially injured. [via Wall Street Journal]
