Google Ditches Motorola
Smartphone unit sold to Lenovo for $2.91B
By Kevin Spak, Newser User
Posted Jan 30, 2014 7:54 AM CST
Google Chairman Eric Schmidt speaks during a press conference in New York, during a major Motorola announcement, in this Sept. 5, 2012, file photo.   (AP Photo/Bebeto Matthews, File)

(Newser) – Google is selling Motorola Mobility to Lenovo for $2.91 billion, the companies announced yesterday, ending what Bloomberg/Businessweek is calling "a rare misadventure" for the big G. Google will retain the "vast majority" of Motorola's patents—which were cited as a major reason for the acquisition in the first place—as well as Motorola's Advanced Technology and Projects group, the Verge reports. In a letter to staff, obtained by TechCrunch, Google CEO Larry Page said that in the "super competitive" smartphone market "it helps to be all in," and Lenovo would be.

Lenovo doesn't have "an effective plan yet," its CEO said, but it believes the buy will "immediately make Lenovo a major smartphone company in the US," much as buying IBM's Thinkpad line made it an instant player in the laptop business. Google, meanwhile, is basically cutting its losses with the deal; it bought Motorola for $12.5 billion in 2012, and it's lost hundreds of millions every quarter since. On the bright side, Quartz points out that it saved billions in taxes and diversified the Android market, creating a viable Samsung competitor.

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Showing 3 of 4 comments
Parker Gabriel
Feb 6, 2014 2:08 PM CST
Hopefully, IBM will wise up and re-buy 'luh-NO!-voh' back from Chinese Beijing! It's been out of the PERSONAL computer market for TOO LONG, and that's assuming that even a SINGLE DAY out of it is too long! IBM should NEVER have gotten out of the personal computer market.
Jon Q. Publix
Jan 30, 2014 11:37 AM CST
Misadventure? Google got the part they really cared about and sold the stripped carcass to the Chinese. Most likely, this was the plan all along.
BinThereDunThat
Jan 30, 2014 10:24 AM CST
Motorola used to be great. That was my first color TV. My parents would never get one because every time they went to someone's house that had a color TV, it was either too pink or too green. Then Dad saw mine. It had gorgeous color, like movie quality color, and he couldn't wait to go buy his own Motorola, and from the same place I got mine! LOL