Google Sells the Loss Making Motorola Mobility for Just 2.91 Billion

Sam Wakoba

11 years ago

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Giant search engine Google has agreed to sell Motorola to Lenovo for $2.91 billion, in a move the firm says is a great step forward for Android users everywhere.

Google acquired Motorola in 2012 for $12.4 billion in 2012 expecting to make lots from the hardware business but the firm has lost some $2 billion and fired lots of employees. The firm will however earn more from the patents it is keeping and the sale of some operations last year for $2.35 billion to Arris Group Inc.

Analysists argue Google’s sale of Motorola was because it was loss making and didn’t seem so competitive in the mobile market.

Google has a little gains even if its selling the firm at a price way below its buying price.

Larry Page, Google co-founder says the buy was to supercharge the Android ecosystem by creating a stronger patent portfolio for Google and great smartphones for users. Page adds that both the Moto G and the Moto X are doing really well.

And though Google acquired the firm expensively, the patents will give it legal protection for its Android software for smartphones and tablet computers but its moving away from building smartphones as the market is competitive according to Page.

“The smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices. It’s why we believe that Motorola will be better served by Lenovo—which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world,’ said Page.

Google will devote its energy on the Android ecosystem and its other hardware programs such as robotics, Glass, Nest Thermostarts and many others.

Page adds that Lenovo has the expertise and track record to scale Motorola into a major player within the Android ecosystem. They have a lot of experience in hardware, and they have global reach. In addition, Lenovo intends to keep Motorola’s distinct brand identity—just as they did when they acquired ThinkPad from IBM in 2005. Google will retain the vast majority of Motorola’s patents, which we will continue to use to defend the entire Android ecosystem.

The deal has yet to be approved in the U.S. or China, and this usually takes time. So until then, it’s business as usual. I’m phenomenally impressed with everything the Motorola team has achieved and confident that with Lenovo as a partner, Motorola will build more and more great products for people everywhere.