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Google Filing Shows that Motorola Was Worth $12.4 Billion in Total, $5.5 Billion of It in Patents

Google and Motorola are now together for the foreseeable future after Google purchased the company last year. With the regulations and legal work is out of the way, the official paperwork has been filed and is giving us a bit more information on the whole deal. In a filing to the SEC, Google confirmed that the whole acquisition cost $12.4 billion dollars, but that most of the money went towards Motorola’s patents. $5.5 billion of the purchase went directly towards the intellectual properties that Motorola had amassed over the years. We have yet to see this purchase win any patent battles for Android, but it has probably deterred a few.

Google has said over and over that there is a “firewall” between the two companies, and that Google has no idea what’s going on over there at Moto. The way that things have been going lately, Motorola could use Google looking over their shoulder though, only time will tell how this acquisition works out.

Now that we know how much everything cost, do you think it was worth Google’s money?

Via: WSJ

  • http://www.facebook.com/motorolazine Motorola Zine

    Google already says Motorola Mobility is Google secret weapon. Also Google already choose new CEO Motorola Mobility from some important person in Google. Do you think
    Google has no idea what’s going on over there at Motorola Mobility? Google already give project to Motorola Mobility to make the next Chomebook (combination between Motorola LapDock 500 Pro, Motorola Webtop and Chromebook), also Project Glass to Motorola (as we know Motorola Mobility introduce Motorola Golden-i in CES 2012), much secret project. Motorola Mobility have innovation talented.

  • Bionic

    Google needs to be hands on with Google manufacturing in order to make their phones more attractive.

  • Gary Patrowicz

    i am sure the part of moto dealing with phones and tablets had a negative dollar amount and will eventually be sold off to the highest bidder. Moto has used and abused its customer base with outright lies and half truths releasing one after another of unsupported devices & then attempting to lay the blame on google, the carriers or anyone to make it seem like it is not their fault. Moto has been its own worst enemy selling products as upgradeable and then not upgrade til the next os is released. They lock their bootloaders on devices that have no carrier and have press release that they will unlock the bootloaders where carriers permit. On unlocked devices the dev community has been able to produce better faster and more stable releases while not being paid than what i can only imagine is a single person trying to get the 20 or so updates ready for already released devices. Their products are priced as if they are the best hardware with the best software but my xoom fe running hc3.1 and sold to me as ics ready says they got my money and now i am screwed. They also held off to feb to announce the release of ics would not be till q2 so devices bought over the holidays could not be returned and have since pushed it back to q3.

  • Tristan Cunha

    GOOG made about $3B in profits last quarter. Which means that it would take about a year, of just funneling profits from the rest of the business to fund the pruchase of Motorola. That seems like a pretty good deal to me, it would take way more than a year to create the amount of IP that they purchased, not to mention the talent. If Google really did want to own it’s own hardware company it would like take at least 3-5 years of investing a significant portion of its profits to build one from the year up.
    Even if Google doesn’t integrate the two businesses, if they can improve the management of the hardware business and at least keep it breaking even that might be a worthwhile purchase if they can use it to improve their “core” business, for example, by bringing over some Motorola talent to work on Google hardware.
    The other argument is that the $12B/1 year’s profit could’ve been better spent by re-investing it to grow Google’s other businesses, or to acquire other, smaller companies. That’s a much more difficult analysis, but at first glance it seems like it was a fair value to pay, and may even turn out to be a good long term investment.

  • kidheated

    I don’t mean to sound like a dick, but who really cares? We all know that Googs bought MotoMobile for the patents and that it was for more money that any of us normal people could every imagine having. The more important question is, will the expenditure help Googs keep android alive and successful? I hope so, but Googs seems a bit too sleeping and not enough giant at the moment.

  • Michael Forte

    I would LOVE a Motorola Nexus, like I’m sure many others would. A true successor to the OG DROID would be nice, without the physical keyboard though.

    • KleenDroid

      I would be thrilled to just have another fully unlocked Motorola phone like the OG. I would have never have left Motorola if they hadn’t locked things up.

      I would be worried that the Motorola Nexus would be the first fully locked down Nexus.

      It would take something wonderful for me to consider coming back to Moto.

    • Guest

      Why not both? :D
      (That is, 2 Nexuses based on the same hardware: one with a physical KB, the other without)

      • http://www.facebook.com/profile.php?id=75200646 Stephen Cox

        Or have an official keyboard backpack that can attach to the Moto Nexus for those of us who want a keyboard. Yes, there are quite a few of us out there that prefer to use those archaic keyboard contraptions.

  • NorCalGuy

    Doesn’t Google just print their own money?

    • Jonathan Williams

      Because Apple bought that patent from the government.

  • g_what

    5.5 is not “most” of 12.4… Fyi

    • Muddy B00ts

      Maybe he meant “most” because there are several pieces to a business. Like 3.5B for software, 2B for Hardware, marketing, etc.
      That bothered me too when I saw it :P

      • http://twitter.com/asten77 Asten

        “most” still went to the other pieces.

    • http://twitter.com/asten77 Asten

      “you keep using that word. I do not think it means what you think it means”

      • Pfigurella

        I see what you did there.

  • http://www.facebook.com/Christopher.Raymond.Brown Chris Brown

    If it helps keep Android intact from both internal (Motorola) and external (Apple) attacks, then yes. That being said, I would absolutely love a Motorola Nexus Device this year….

  • normmcgarry

    All depends on if the Razr HD has a locked bootloader or not.

    • http://www.facebook.com/people/Omar-Amer/100000249789319 Omar Amer

      It’s motorola, do you really have to ask?

      • normmcgarry

        I didn’t ask.

        • KleenDroid

          IT is guaranteed to be locked. Too bad since it could have been a nice phone.

  • moelsen8

    not if i don’t have a moto nexus in my hands in 6 months

  • adtst3

    Technology lately has been a race for patents, so i think this is a good acquisition by Google.

  • ERIFNOMI

    “With the regulations and legal work is out of the way, the official paperwork has been filed”
    Might want to fix that sentence.

  • Michael_NM

    The patents yes, but if Google stays hands off, the rest was a waste.

    • Aardvark99

      That is if you believe the patents are really worth just $5.5B to them, I don’t. If these patents can help defend the entire Android platform I suspect it’s worth far more than the total price of $12.4B – plus they get Motorola (that at worst could be sold to defer some of that cost)

      • michael arazan

        “Google has said over and over that there is a “firewall” between the two companies, and that Google has no idea what’s going on over there at Moto.”

        I doubt Google will let this company flounder and will get involved, they aren’t going to let a 12 billion dollar asset to lose money and drop in value. I’m sure they are going through the books as we speak assessing the situation.

  • r0lct

    I don’t think it wasn’t a question of value. With the rumors of Moto about to sue other OEMs I think they felt they were obligated to in order to defend Android OEMs not just from Apple, but from Moto.
    As a total guess with those loses if they aren’t going to integrate Moto they will be a fire sale in the next 18 months.