Assuming that google keeps the majority of/important patents then they basically bought the patents for $4.74 billion. They sold the "set top" division for $2.35 billion and now they're selling the mobility division for $2.91 billion. They also kept about $3 billion in cash that Motorolla was holding when they bought them for $13 billion.
That's not even counting whatever tax incentives they get from these deals. So all in all, it isn't as bad of a deal as it looks like on the surface (in fact I assume it is what Google was planning from the beginning).
Tax benefits from the purchase I think. They were saving something like $700m a year in taxes for a bunch of years following the purchase. I forget the details.
Motorola was bleeding money when Google purchased them. Google can deduct the operating losses from their profits to reduce their tax burden.
In addition, Motorola likely has many depreciating capital assets, and when the loss was booked by the sale, they can also write those off from their profits. A deal like this will have tons of tax lawyers going through them to maximize their benefits.
Assuming that google keeps the majority of/important patents then they basically bought the patents for $4.74 billion. They sold the "set top" division for $2.35 billion and now they're selling the mobility division for $2.91 billion. They also kept about $3 billion in cash that Motorolla was holding when they bought them for $13 billion.
That's not even counting whatever tax incentives they get from these deals. So all in all, it isn't as bad of a deal as it looks like on the surface (in fact I assume it is what Google was planning from the beginning).