Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Google Says Almost Half of Motorola Purchase Price for Patents

Don't Miss Out —
Follow us on:

July 24 (Bloomberg) -- Google Inc., owner of the world’s most popular search engine, said less than half of the $12.4 billion it paid for Motorola Mobility Holdings Inc. was devoted to patents and technology.

Of the total, $5.5 billion was attributed to patents and “developed technology,” Google wrote in a filing today with the U.S. Securities and Exchange Commission. Another $2.6 billion relates to goodwill, which Google defined as the financial benefit it expects to derive from the acquisition.

The Motorola Mobility acquisition, which closed in May, shores up Google’s patent portfolio to help it combat legal challenges against the Android mobile operating system. Motorola Mobility, which has more than 17,000 patents, also helps Google enter the hardware market to compete more directly with Apple Inc. and other smartphone manufacturers.

“The acquisition is expected to protect and advance our Android ecosystem and enhance competition in mobile computing,” the company said in the filing.

Google also said $730 million of the acquisition price reflected customer relationships and $670 million was related to other assets. The company also acquired $2.9 billion in cash.

Google, based in Mountain View, California, fell 1.3 percent to $607.57 at the close in New York. The shares have fallen 5.9 percent this year.

To contact the reporter on this story: Brian Womack in San Francisco at bwomack1@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.