Was actual price Google paid for Motorola less than $2 billion?

A few days ago Google announced that it was selling the set-top box division of Motorola to ARRIS for a combined stock and cash price of $2.35 billion. This event has triggered a look back at the original purchase of Motorola by Google for a publicized price of $12.5 billion by the folks over atForbes. According to their analysts, two items of value can be backed out of the original purchase price.

The first is the set-top box division which we now know was worth $2.35 billion. The second are tax savings that Google will realize as a result of Motorola’s losses. Robert Willens, a New York tax expert, has estimated Google will be able to offset the Motorola losses against Google’s own profits to the tune of $1.7 billion initially and $700 million annually through 2019. By Forbes calculations, that brings the price down to $1.5 billion. My own calculations come up with $2.85 billion.

Whatever the final number is, we are closer to being able to assign a value to the patents that Motorola owned, which were the main target of Google’s acquisition.

source: Forbes