Google sells Motorola Mobility unit to Lenovo for USD 2.9bn at mammoth USD 10bn loss
Google has reportedly sold its Motorola Mobility unit to Chinese PC maker Lenovo for a steep price of 2.91 billion dollars.
Motorola Mobility had been a source of tension for Google, while Lenovo had been struggling to make success outside China, and the acquisition is expected to benefit both the companies.
According to Cnet, Lenovo would get the Motorola brand, its portfolio of devices, including MotoX and Moto G, apart from more than 2,000 patent assets, to expand its smartphone business.
Google would be getting 660 million dollars in cash, 750 million dollars in Lenovo shares, with the remaining 1.5 billion dollars paid in the form of a three-year promissory note.
The search giant would continue to hold charge of a majority of patents it originally obtained when it acquired Motorola in 2012 for 12.5 billion dollars.
The report said that Motorola continually posted losses and in the most recent quarter, it posted an operating loss of 248 million dollars.
(Posted on 30-01-2014)