The latest news in the tech industry is regarding Google's purchase of Motorola. A few headlines went up today talking about the deal; one stating it was a waste of money and the other saying Google actually saved money with their purchase. According to a Bloomberg piece, David Martin, founder and CEO of patent consulting firm M-Cam, told Bloomberg that Motorola already sold off the bulk of its valuable patents. He stated the patents that are left, which was estimated around 25,000, are not very useful to Google and actually make them more open to patent battles. Some of the patents conflict with Apple patents, so there could be a few open shots swung at the California based company.
Now the good news. Google, after buying Motorola, will save $1,000,000,000 on their next tax date with the government, along with another $700,000,000 savings in other overseas countries. This savings will last till 2019, but will only be $700 million a year from the American government.
This tax break was not available to Motorola because they did not have the profit offset that would enable them to claim it, but that's not the case for Google.
At the end of the day Google is getting a few good patents, a new stable phone business, and now.... less yearly taxes. Don't you just love America, one of the only places where when you're buying something you're actually saving money. Reply below and share your thoughts.
Patents: BGR Tax Saving: BusinessInsider
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