Wednesday, January 29, 2014

Google is selling Motorola to Lenovo for $2.9 billion

A picture taken on August 1, 2013 shows the American-manufactured Motorola Moto X smartphone at its unveiling on August 1, 2013 at a a news conference in New York.

Google has confirmed it is selling Motorola off to Chinese firm Lenovo for $2.91 billion US, only a year and a half after acquiring the troubled phone maker for $12.5 billion.
Google CEO Larry Page says Motorola will be “better served by Lenovo” in the competitive smartphone market while Google continues to focus on the Android software that runs a majority of the world’s smart devices.
“Lenovo has the expertise and track record to scale Motorola into a major player within the Android ecosystem,” Page wrote “They have a lot of experience in hardware, and they have global reach.”

Google will retain the majority of Motorola’s valuable patent portfolio, which was a major reason for the acquisition in 2012. The tech industry has been roiled in recent years by patent lawsuits from major companies as well as so-called patent trolls who make spurious patent claims against companies in order to extort royalties. Google’s purchase of Motorola was widely seen as a defensive manoeuvre against rival Apple.
In addition to the big write-off Google is accepting in its sale to Lenovo, Motorola also lost nearly $2 billion since the takeover, potentially making it the costliest Google failure to date.

While Google is reversing courses, Lenovo is gearing up for a major expansion. Already the world’s largest maker of personal computers, Lenovo now appears determined to become a bigger player in smartphones as more people rely on them instead of laptop and desktop computers to go online.
The sale still needs to be approved by U.S. and Chinese regulators.
Ishmael Daro|

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