Google sells Motorola Mobility to Lenovo for $2.91 billion

Google has just announced that it will be offloading the loss-making Motorola Mobility smartphone business to Chinese OEM Lenovo in a deal valued at about $2.91 billion.

In a post on his company's official blog, Google CEO Larry Page officially announced that Lenovo would be acquiring Motorola Mobility to push Android further with its global reach and manufacturing prowess. Larry said, “Lenovo has the expertise and track record to scale Motorola into a major player within the Android ecosystem. They have a lot of experience in hardware and they have global reach. In addition, Lenovo intends to keep Motorola’s distinct brand identity--just as they did when they acquired ThinkPad from IBM in 2005.” 

Google purchased Motorola Mobility, the handset division of Motorola, for $12.5 billion in May 2012, but is now offloading it to Lenovo for a fraction of the price. According to the Google investor relations site, the transaction will be carried out in cash and stock. Lenovo will get control of the Motorola Mobility brand and 2000 patents, however, Google would maintain ownership of the remaining patent portfolio and will license them to Lenovo.

Motorola Mobility has consistently lost money for Google, reporting a total operating loss of $248 million in the the third quarter of 2013. Google initially purchased the company to make use of its valuable communications patents against competitors but after losing majority of lawsuits involving Android, Google seems to have given up on keeping the failed handset division.

Image via Motorola

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Rumors are already swirling about Google killing the Nexus line. I wonder if this is more fuel for the fire. After all, Google is getting all snuggie with Samsung now. Perhaps Google wants out of the Nexus business so they can strengthen the relationship with their strongest partner.

you have it correct, google has chosen Samsung as there oem of choice with android. Samsung have even been told to get rid of all the crapware and get back to a more basic android os.

If Samsung does indeed get rid of all its crappyware, and focus on the stock image.
And if they price it right (like Nexus right), maybe there is a chance. Otherwise, I may switch back to iPhone.
This is all assuming the death of Nexus line, by the way. As long as Nexus is around, come to papa!

Figure 8 Dash said,
Rumors are already swirling about Google killing the Nexus line. I wonder if this is more fuel for the fire. After all, Google is getting all snuggie with Samsung now. Perhaps Google wants out of the Nexus business so they can strengthen the relationship with their strongest partner.

Wait a minute. Next month in Barcelona, Samsung are going to announce their new line of Android-free phones. They've already had to pay Apple a $bill and the next Apple case starts in March. I'm hearing $4- $6 bill this time. Not the basis for a good long-term business. Face facts. Android is dead.

techbeck said,
Yea, mediocre phones which got some pretty good reviews.

Uh, the zune got very good reviews, yet it ended up being a sales failure.

Apple sold 150million Macs over a 30year period, that's 5million a year. The Zune was a bigger success then that. Still non of the tech journalists and ifans mention Apples huge blunder with Macs.

Bummer. Hopefully they will keep making the Moto X and Moto G and I am betting there will be close ties with Google If Lenovo can push Android further and continue to produce good phones with Moto, then all the power to them.

they may still make them but you wont be buying them for the same price they are at right now, Lenovo are not in this business to loose money.

Google's purchase of Motorola for $12 billion was the dumbest management decision in the history of dumb management decisions. They were outplayed, outmaneuvered and outfoxed by Carl Icahn at every step. This new transaction proves that. Embarrassing. Worse, they still haven't won a single court case using Motorola's "valuable" patent portfolio. They've lost dozens of cases in courts around the world.

With such a MASSIVE loss of shareholders' money, surely Google's CEO and/or Chairman MUST resign?

Major_Plonquer said,
With such a MASSIVE loss of shareholders' money, surely Google's CEO and/or Chairman MUST resign?

No, they will just by more robotics companies and float more balloons until SkyNet becomes sentient.

A conspiracy between Google and Samsung. Goob job. It's just a matter of time before OEMs realize that there is only Google and Samsung on the smartphone business.

**** Google, **** Google, **** Google!!! Buying Motorola and doing a half assed job with Motorola and selling it off 19 months later to Lenovo is crazy. At least Lenovo isn't brain dead like Google is.

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