Google has finally sold off the Motorola Mobility unit to Lenovo for a reported price of $2.9bn. Google had bought Motorola in 2012 for a price of $12.5bn. This means Google has sold Motorola at a staggering loss of $10bn.
Motorola had been constantly reporting losses and it had become a kind of headache for the web giant. On the other hand Lenovo was looking for widening their horizons crossing the Chinese border. Now, with this acquisition it looks like the purposes of both these companies has been solved.
CNet reported that Lenovo would be getting the Motorola brand along with the portfolio of the devices. This includes the Moto G that was in the news recently apart from Moto X. The company will also get 2000 odd patent assets, which will help Lenovo in expanding its Smartphone industry.
Motorola had been experiencing bad patch as the company suffered losses amounting to $248 million in the form of operating losses.
As far Google is concerned, they will be paid $600 million in cash. The other amount will be in the form of Lenovo shares amounting to $750 million and $1.5 billion will be paid in a time span of three years.
Google will still hold some of the patents that it initially got a couple of years back when the US-based company purchased Motorola.