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Google sells Motorola to Lenovo for $2.91 billion
Google is selling Motorola Mobility to Lenovo, giving the Chinese smartphone manufacturer a major presence in the US market. Lenovo will buy Motorola for $2.91 billion in a mixture of cash and stock. Google will retain ownership of the vast majority of Motorola's patents, while 2,000 patents and a license on the remaining patents will go to Lenovo. Lenovo will pay Google $660 million in cash, $750 million in stock, with the remaining $1.5 billion paid out over the next three years.
Google, of course, has never been “all-in,” when it comes to smartphones. Instead it has successfully made phones with numerous industry partners over the years. In this light, the decision to cut its losses and redirect focus to Android makes some sense. For its own part, Lenovo also has had a decent track record of strategic purchases. It 2005, it bought IBM’s personal computer business for $1.25 billion, making it the third largest PC maker in the world. Just last year it overtook HP as the largest.
We’ll see if it can do the same thing with Motorola and smartphones.
It think that's been one of the problems; the patents aren't worth as much as envisioned.
So just how much has Google lost on buying and selling Motorola Mobility? $9bn - as The Telegraph seems to think? $7bn as simple arithmetic would seem to indicate? Or how about a very decent indeed profit as the vagaries of tax law might indicate - with that tasty patent portfolio thrown in for free?