Surprisingly, Technology giant—Google, has sold its struggling US mobile phone company Motorola Mobility to Chinese computer manufacturer Lenovo for $2.91billions.
Noticeably, Google had paid a whopping sum of $12.5 billion for the company around two years back. But Motorola’s consistent dropping performance has surged the technology giant to sell its acquisition at a relatively smaller amount. However, Google will keep the majority of Motorola's lucrative patents, which include one for Android software.
On the other hand, with Motorola purchase, Lenovo is all set to become world's third-largest Smartphone maker after Samsung and Apple. Moreover, the deal will certainly help the Chinese company to offset its slowing personal computer business.
Google CEO Larry Page, announced the latest development by posting on official blog of Google. It reads, “We’ve just signed an agreement to sell Motorola to Lenovo for $2.91 billion. As this is an important move for Android users everywhere, I wanted to explain why in detail.”
Leveraging trust on Lenovo’s capability, Parker wrote, “Smartphone market was "super competitive" and that Motorola would "be better served by Lenovo".
Yesterday, two reports from Reuters and China Daily were doing the rounds that Lenovo is going to buy Motorola Mobility from Google for $2 billion to $3 billion.
According to Strategy Analytics, a market research firm, Lenovo had made "a good move" and would benefit from economies of scale.
A leading daily quotem the report which reads, "The Chinese vendor gets access to the valuable US smartphone market and the fast-growing Latin America region. This complements its existing global PC business.
"For Motorola, it gains access to an ambitious sugar daddy that has a strong presence in the huge China market. For Google, it divests a loss-making hardware division," the report added.