Google confirms it’s selling Motorola Mobility to Lenovo for $2.91Billion

Seems like Motorola will have to change their logo soon enough as it will no longer be a Google company. Google has decided to sell Motorola Mobility to Lenovo in a deal valued at $2.91 billion.

 See also: Google buys DeepMind artificial intelligence firm For $240 Million

Now, Motorola was acquired by Google for $12.5 billion in 2012. However, the company isn’t making a loss of close to $10 billion on the deal as you’d think. Instead, it will be keeping a majority of Motorola’s patents, while Lenovo will get the handset business along with the Motorola Mobility brand and its trademarks and close to 2,000 patents. Google will allow Lenovo to licence out the patents the Mountain View giant will be keeping with itself.
Despite Google’s best efforts and launch of devices like the Moto X and the Moto G, Motorola has still been a loss making business at Google for as long as it has managed it. With close ties with Samsung and other manufacturers Google might have though that it doesn’t need the hardware making business afterall. Lenovo on the other hand, will get a much needed foothold in the US market where Motorola still has a strong presence.
We’re hoping that Lenovo can turn around Motorola’s fortunes, the way it did with the ThinkPad after acquiring it from IBM. The deal should be closed after it gets regulatory approvals both in China and the United States.
 Source:investor.google

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