Posted by Tsepz_GP
Google won’t have the Motorola albatross hanging around its neck for much longer. Unnamed sources tell Reuters that Chinese computer vendor Lenovo is close to buying Motorola Mobility from Google for around $3 billion, which backs up a similar report from China Daily claiming that Lenovo would buy the one-time mobile phone titan for $2 billion. Although we don’t know when a deal to buy Motorola will be finalized, Reuters‘ sources say that an official announcement could come as soon as Wednesday. Reuters also says that the deal is expected to include “some” of Motorola’s patents.
Google originally acquired Motorola less than three years ago for $12.4 billion as a way to shore up its mobile patent portfolio to protect against lawsuits from Apple, Microsoft and other tech companies. The acquisition was a borderline disaster for Google, however, as Motorola’s patents turned out to be worth much less than originally thought and sales of Motorola devices kept tanking despite a massive infusion of marketing dollars to promote devices such as the Moto X.
The deal makes a certain amount of sense for Lenovo, which has been trying to crack the American smartphone market in the same way that Samsung has over the past few years. The trouble is, though, it’s not clear whether Motorola has a strong enough brand in the United States anymore to really make a difference.
Google originally acquired Motorola less than three years ago for $12.4 billion as a way to shore up its mobile patent portfolio to protect against lawsuits from Apple, Microsoft and other tech companies. The acquisition was a borderline disaster for Google, however, as Motorola’s patents turned out to be worth much less than originally thought and sales of Motorola devices kept tanking despite a massive infusion of marketing dollars to promote devices such as the Moto X.
The deal makes a certain amount of sense for Lenovo, which has been trying to crack the American smartphone market in the same way that Samsung has over the past few years. The trouble is, though, it’s not clear whether Motorola has a strong enough brand in the United States anymore to really make a difference.
BGR
[ This Message was edited by: Tsepz_GP on 2014-01-29 21:45 ]
Posted by Away
It's official
Posted by tranced
At their blog
Lenovo to acquire Motorola Mobility
Posted by Ranjith
so it was all for the patents?
Posted by hihihans
Guess so, but we already knew that.
I do wish Lenovo all the best. My wife has the Yoga8 tablet and it's a splendid device.
Posted by Bonovox
Lenovo are one of the best PC manufacturers and considered most reliable with their IBM's. Am sure it'll be a bright future
Posted by skblakee
Good move for both parties. Google gets rid of an albatross which they never really wanted, they keep to keep the patent portfolio, the get rid of a major loss making unit, Lenovo gets to own a major phone manufacturer and they are based in China which should help them fight Apple in that all important market.
As I understand it Google lost "only" $4.4 billion on Motorola because Motorola had $1.9 billion in cash at the time it was bought, they sold the set top box business for $1.9 billion and this deal is for $2.91 billion and they own patents.
Posted by Ranjith
i really love Lenovo's phones for their price!decent built too