Originally Posted by island hermit
1. Tax losses
2. Money acquired on acquisition
3. Sale of set top boxes (plus 15% stake in Arris)
4. Remaining patent valuation
5. Sale to Lenovo
Total BS Island Hermit. Show me your calculations:
Purchase price $12.5 B
Sold set top box unit for $2.3 billion (stock and cash)
Sold phone business for $3 billion
Most of the patents are worthless and they lost a decision to Microsoft recently where they tried to get Billions for royalties but the court only gave them a few million. Lets just be generous and say the patents are worth $1 Billion
Motorolla was losing about a billion dollars a year from operations.
This does not even count the legal fees to make the acquistion and selling the company. Also labor cost, severance costs, SEC costs, ect. That could easily be another one hundred to two hundred million dollars.
-2.3 sell set top business
-3 sell phone business
-1 value of patents
1.0 operational losses under google
total = 7.2
google tax rate is 24%
Total loss is $5,400,000,000. Google only made $10B in fiscal year 2012. So the loss basically wiped out half of year of profits.
Now try to spin that as being 'a small loss'.