Google to sell Motorola Mobility to Lenovo for $2.9 billion
This entry was posted on Wednesday, January 29, 2014.
It was back in August 2011 that Google bought Motorola’s loss-making Mobility division for over $12 billion. It seemed a tad excessive even back then, but the major justification of the acquisition happened to be Motorola’s vast patent portfolio (in the time since then, that is disputable as well). Now, it turns out that Lenovo may be ready to take Motorola Mobility off Google’s hands already, with an acquisition of $2.91 billion confirmed by Google CEO Larry Page. Read on below the break to know more.
The Google Motorola collaboration directly brought out two phones to the public – the Moto X and Moto G. Both phones were well acclaimed, with the former’s myriad customization options, and the latter’s scarcely believable combination of features and low price making them popular among critics and the public alike. Regardless, the Moto X is said to have underwhelmed Google with its sales figures, and the sale of the company to Lenovo will let them keep hold of the pricey patent portfolio of Motorola (according to the terms of the acquisition), while they will relinquish the control of the troublesome hardware division to Lenovo entirely.
Considering that Motorola had been making sizeable losses in every quarter despite two well received devices clearly helped make Google’s mind about the entire deal, in all likelihood. While it is a pity that a once hugely successful phone maker is getting discarded even by a company as cash-rich as Google, Lenovo’s success in the hardware market for other devices may just augur well for Motorola.