Google Sells Motorola To Lenovo For $3 Billion

According to a recent press release from Google, the Search Engine giant will be pawning off Motorola to Lenovo. The terms of the acquisition are that Google will sell Motorola for $2.91 billion, including US$660 million in cash, US$750 million in Lenovo ordinary shares and US$1.5 billion to be paid in the form of a three-year promissory note.

Google will still keep most of Motorola’s patents, but Lenovo will receive the licenses to use them as well and also an additional 2,000 patent assets, the Motorola brand and trademark portfolio.

motorola

In the end I think when it comes down to it this was all Google was after in the beginning was Motorola’s patents, the hardware side of Motorola was just a potential money maker. Which obviously didn’t work out as the latest quarterly earnings (Q3 2013) showed an operating loss of $248 million, which is even greater than the $192 million loss reported in the year-ago quarter.

It is still a big loss for Google who originally paid $12.5 billion for Motorola in 2011. Despite the fact it also sold Motorola’s cable set top box division to Arris for $2.3 billion. In other words Google has been left with a $7.2 billion loss.

Details on the Lenovo transaction and its effect on the company should be announced in the coming days.

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  • blu

    I doubt it is a 7.2 billion loss.
    They got a lot of patents out of the deal (which they are keeping) which is probably what they were after anyway. In the long run it will pay off (not having to pay others for the patented stuff and others paying them to use it).