The current total XRX Goodwill is only $1.91 BN, but.... Lexmark has goodwill as well. With a total market cap of less than 1/3 of the Goodwill, you have to wonder if they have ANY Goodwill value left. They wrote down 1BN a yer ago when the stock was at $9, now it's $3. I was thinking before the Q3 loss would be 1BN, but now I'm thinking closer to $2 BN.
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Also, you will not see the LEX related GW until Q3 statements are published. The last GW write off was completely unrelated to LEX if I understood your question.
Simplistically, the FMV of assets and liabilities of LEX is determined, then the net asset (asset-liabilities) amount is compared to the purchase price. The difference is GW.
@OP can you help explain- so Xerox bought Lexmark in a deal worth 1.5 billion. How does one know how much of this is goodwill or is that extra on top of the price? I’m trying to understanding the premium paid. Or am I not understanding correctly? I guess if 1 bill is already written down last year - does that leave 500mill? Your help would help!
goodwill writedown is going to 5X the entire market cap of XRX. how could you possibly be worth NEGATIVE 500% of a company. this is absolutely wild