Final Price for Motorola Patents: $4.2B

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Jan. 30 (Bloomberg) -- Bloomberg Businessweek's Brad Stone and Bloomberg's Cory Johnson look at the numbers behind Google's sale of Motorola to Lenovo on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

How much did google actually end up paying for the company?

Let me take you through it.

I will go glenn beck with you with a chalkboard.

24 point -- 24 billion back out.

2.9 billion in cash.

They sold the business for 2.4 billion.

They sold everything else with the patents.

They paid $4.2 billion for patents they are trying to use offense of late, suing people like apple.

Thus far, none of these have led to any injunctions.

It is an open question what the true value of the patents is.

Where does this leave google in terms of the handset makers out there.

They were walking a fine line in the first place given that all the others use android.

Hattie think sam sung felt to have the provider of its operating system selling phones in a major way.

To suddenly be competing head to head with sam sung getting billing agreements with the carriers.

Sam sung made some waves at the show, suggesting may be a lot of the operating stuff google wants , there was a study that said as much as 25% of phones that have android do not have the products.

Google was at risk by keeping motorola.

Whatever headaches they thought they would get in the hardware business, maybe worse.

The other problem is the headaches they took on were massive losses every quarter from motorola.

$248 million.

Big losses from google in that handset business.

On top of that, sam sung, and the questionable value of patents.

Google takes it on the chin here.

Christ hang on.

I want to ring in brad stone.

We know google and sam sung signed a broad licensing deal having to do with patents.

Do you think there is anything more to that deal?

? they gave sam sung greater incentive to do that.

I love cory's map.

It tells you for a $400 billion market cap name, google, they generate the cash on a quarterly basis and gave themselves a hedge or patent protection.

Two years ago, the spikes were a lot more than now.

This worked out pretty well for google.

They have patent protection he thinks it is not that big a deal.

I agree with mark that they deactivate a potential bomb in the form of destructive litigation.

They clearly had ambitions around turning more to roll into the pre-eminent manufacturer and they installed a longtime executive at the head of motorola.

They were staffing up and it did not work out.

Cory pointed out, it created a lot of conflict in the android ecosystem.

You know, in that respect, it was a misstep.

As mark points out, they got value out of it.

They keep the patents.

In the overall scheme of the incredible as this, it is probably not -- klesko into innovo, he will stay at google.

We will continue the conversation after the break.

Up next, i want to talk more

This text has been automatically generated. It may not be 100% accurate.


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