In a surprise move, Google has sold its Motorola Mobility handset business, which it had bought for $12.5 billion, to Chinese PC manufacturer Lenovo for $2.91 billion. As part of the deal, Lenovo will pay Google $660 million in cash and $750 million in stock. The remaining amount of $1.5 billion will be paid to Google over three years.
Motorola Mobility was bought by Google back in 2012 and market analysts were of the view that Google was mainly interested in Motorola’s patents. As per a blog post by Google’s CEO Larry Page, they will retain most of the patents, which they will continue to use for Android.
According to Larry, Motorola will be better served by Lenovo, which has a rapidly growing presence in the smartphone market. In the blog, Larry says, “This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”
In a statement, Lenovo CEO Yang Yuanqing said that “The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones.”
What do you think about this deal? How will it impact the smartphone market? Do let us know.