Google To Sell Motorola For $2.9 Billion

Google

Google announced yesterday that it will be selling Motorola Mobility to the Chinese PC company Lenovo for 2.9 billion dollars.  This is a significant loss after Google purchased Motorola for $12.5 billion in May of 2012.  The hope of the initial purchase was for Google to have a platform to introduce its Android OS onto homemade hardware.  However, ever since the purchase Motorola has consistently lost money for the tech giant ever since the purchase a year and a half ago.

In Google’s blog post, CEO Larry Page said that “[T]he smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices, this move will enable Google to devote our energy to driving innovation across the Android ecosystem.”  So while Google seems to be going all in with their Android OS, Lenovo is believes that buying up Motorola  will be able to allow them to tap into the gigantic Chinese smartphone market and hoping that they will crack into Samsung and Apple’s market share.  However, in the transaction, Google will be keeping its hands on most of the Motorola patents which was a lot of their motivation in the first place.

CEO Larry Page said that this sale would not impact Google’s other hardware efforts whatsoever, such as Google Glass.

All in all, despite the near 10 billion dollar loss, this is seemingly a win-win situation for Google and Lenovo in that Google was able to force Android onto the smartphone market, hold onto some critical patents, and Lenovo can break into the Chinese market.

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  • the authority

    Google needed patents and Lenovo needs the name. Win-win. Google only purchased Motorola fir their parents (for their ongoing lawsuit with Apple etc). Lenovo has the manufacturing expertise but needs a name that the Chinese recognise.

  • trymyhelp

    They bought is for patents (motorola got more than 2000 patents) and

    Google sells Motorola Mobility to Lenovo for $3bn, retains patents

    • arterius2

      doesn’t matter, Lenovo do not lack any manufacturing, they really just care about the patents anyways, paying $3bil for something google paid $12bil for, that’s a fucking steal in my book.

  • arterius2

    so… google just bought Motorola and barely released a phone and now sold it off for a quarter of its price? what a fucking failed investment.

    • Dumb

      They should have realized the phone market is fucking dumb. It’s not who makes the best hardware, it’s who has their shit endorsed by the ghettoist / coolest rapper / celebrity. It’s all about fads.