Sunday 23 February 2014
Google bought Motorola for $12.5B, sold it for $2.9B, and called the deal ‘a success’
Google bought Motorola for $12.5B, sold it for $2.9B, and called the deal ‘a success’
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From the Forbes interview:
I think the Motorola transaction has been a success for us. Financially, we bought the asset for $12.5 billion. It had $3 billion in cash; we were able to sell the Home division for $2.5 billion; we ended selling the handset division for $3 billion. There were some other tax assets as well. When you work through the math, you realize we spent between $2.5 billion and $3.5 billion for the patent assets. At the time, the nearest comparable transaction was the Nortel patent auction where Microsoft and Apple teamed up to buy that asset for $4.5 billion. And there’s a good argument that the Motorola patent portfolio is a better portfolio.
As Larry noted, if you want to compete in the [handset] space you do need to be all in. We realized that Lenovo as a partner was all in, so that transaction made sense.
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