In a move to reduce its loss making business attempts, Google has decided to shelve off its Motorola smartphone business to Lenovo.
Motorola has been making constant losses in the previous years and had become a financial burden to Google. Motorola has seen a loss of nearly 2 billion US dollars since Google took it over in they year 2012.
Lenovo has now been reported to be buying the ailing phone manufacturer for a price of 2.9 billion US dollars. Lenovo has been expanding very rapidly its footprints in international business. Last week it had announced a deal to partly buy in IBM’s low end server business for a price of 2.3 billion US dollars.
Rise of Lenovo
Lenovo thinks that it can make a comeback in the smartphone market globally like it did with the PC and the laptop market earlier. Lenovo had bought the IBM’s PC business in the year 2005. With this purchase, it hopes to increase its footprint in the US market. Lenovo is already the second largest player in the Chinese smartphone market.
Google retains Motorola Patents
As part of the deal, Google has decided to retain the patents from Motorola, which will continue to give it an edge in the super thriving Android segment.
Google had paid a whopping price of 12.4 billion US dollars for buying Motorola in the year 2012, which included the rights of all the patents from Motorola mobility.