Forbes: Motorola Deal Costs Google $1.5 Billion Only



Recently Forbes calculated original Cost of Motorola Google Deal which signed last year and approved this year worth $12.5 billion. Forbes estimated that Motorola Deal costs $1.5 Billion to Google. They reached to this number by deducting amounts Google earned in many ways from deals.

First thing Forbes deducted is the Set Top box Motorola business which they sold to Arris last week. Secondly tax deductions are included, detailing:

“The tax benefits of the deal make what was a good deal into a great deal,” said Robert Willens, a New York accounting and tax expert. He estimated that through the acquisition, Google can expect to reap $700m a year in tax deductions from future profits each year through 2019. Google also will be able to immediately reduce its taxes by $1bn due to Motorola Mobility’s US net operating loss, and by a further $700m due to its foreign operating loss, he said.

So when deduced all these things than sum of $1.5 Billion appeared. So overall its best price for all patents.

Source: Forbes

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