Google “offloads” Motorola to Lenovo for $2.91 billion

Breaking news, In what has come as a shocking twist of events, Google is selling Motorola Mobility to Lenovo, and this move will give the Chinese smartphone manufacturer a major presence in the mobile business. The deal will be finalized at a tune of $2.91 billion in a mixture of $660 million in cash and $750 million in stock, the remaining $1.5 billion will be paid out over three years. The beauty of this is that Google will retain ownership of the vast majority of Motorola’s 2000 patents, and a license on the remaining patents will go to Lenovo. The is the sole reason why Google bought Motorola in the first place.

Lenovo CEO Yang Yuanqing said within a year of the Motorola acquisition, Lenovo is expected to sell 100 million Smartphones worldwide. Last year, Lenovo shipped an estimated 45 million Smartphones, a 90 percent growth from the previous year.

Google believes Lenovo can turn Motorola into “a major player within the Android ecosystem.”

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According to Google CEO Larry Page

“Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem, This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”

The Google offload

In 2012 Google bought Motorola Mobility for $12.5 billion for mainly its vast patent portfolio. Now, Google is offloading this handset business, which has been losing hundreds of millions each quarter since the purchase. You can hit the source link above to get the details of this purchase.