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Originally Posted by HansTWN
My thinking is that they made the deal for the patents ONLY.
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I agree. (Although they might also see some value in being able to release what would essentially be reference design devices)
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Selling the hardware business to some Chinese company (who desperately wants the development know-how and marketing connections --- to Verizon, etc --- and gets government money for the deal) would recoup a significant part of what they paid for the whole company in the first place.
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But what is a significant part?
Before the offer, the market valued the business at about $7.5Bn.
The company had $3Bn in case, which leaves about $4.5Bn for the value of the patents and hardware business.
Strip off the patents, and how much is the hardware business going to sell for?
Now compare that to the $12.5Bn Google is paying.
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In the end, anything they can get for the hardware part would be a good deal for them.
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In the real world yes, in the world of accountancy maybe not. Google would have to book a multi-billion dollar loss on the sale.
I'm not saying it doesn't make sense, but it could look really ugly on the books.