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Originally Posted by
jragosta 
Let's see your evidence that Google did it on a whim. That would create a massive shareholder class action suit. NO ONE throws away $13 B on a whim.
Perhaps not whim but it sure looked rushed.
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Really? So you're a patent expert now? You know more about the value of the patents than the team of advisors who undoubtedly vetted this deal? I sure don't know what they're worth, either, but suggesting that google doesn't have any idea what they're worth is baloney.
So your contention is that Google must have done all the due diligence required in vetting Motorola's patent portfolio because it would be stupid not to. But that's just an assumption that corporations never enter into stupid buying decisions...heck, I can't think of any bad tech mergers and acquisitions...ever. /sarcasm
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First, tax losses does not mean that the company is consuming cash. In fact, it is not uncommon for a company to have tax losses and still generate cash. Second, you're ignoring the possibility (likelihood, in my opinion) for the operating division to be split up. There are parts that Google certainly won't want which can be sold. Finally, there is the fact that Google can add value to some portions of the division.
Ah what? The reason that tax losses don't always consume cash is because it's used to offset the profits of another division or carried forward to offset profits in future years. But it's STILL a loss to lose a $1 to save $0.35 on taxes.
So on one side you can claim "Hey, Google gets a tax benefit!". On the other, what it really meant was that Moto's cash pile was smaller by that amount since they had to carry those losses forward because they couldn't offset non-existant or minimal profits.
Of course, without the billions in losses Moto wouldn't have been an acquisition target so you get what you get.
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And you know this because.....?
Because pretty much every step/option you describe costs money? Money that companies often report as a one-time write off as part of the costs of acquisition?
These costs will be offset by the sales and such but you can't JUST start with $12.9B and then deducting from that number using the full value of the sales or value of the assets (other than cash).
Any time you spend billions in cash (vs stock...huh, I wonder what Jha's prediction of the future value of Google stock was) at a huge mark up with a huge $2.5B withdrawal penalty six times the going rate you have to expect the impression that one CEO pulled the wool over the eyes of the other CEO in a big assed way and someone did an epic fail on their due diligence checks.
Arguing this is some awesome master stroke requires quite a few assumptions...the most major of which is that M&A isn't a blood sport and that Jha was looking for the most optimum outcome for all parties and not the optimum outcome for Motorola Mobility and himself. One CEO looks like a freaking genius. The other...well...we'll have to see but he made a huge hill for himself to climb and "Look Ma! Tax write offs!" is not exactly a good start, one fortunately he's not making for himself.