The tech world has been in somewhat of a shock ever since the news emerged that Google may be selling Motorola to Lenovo. The search giant has now confirmed the news, saying that the deal rakes in $2.91 billion and that it gets to keep a ‘vast majority’ of the patents.
Google’s acquisition of Motorola was primarily seen as an attempt to gain hold of the treasure-trove of patents owned by Motorola. The acquisition came in heavy for the search giant, costing it a cool $12.5 billion. And although Google has profited significantly from Motorola’s patents portfolio in that it has strengthened the defenses of the Android market, Motorola hasn’t brought in any profits since the acquisition.
In fact, ever since the acquisition, Motorola has been incurring hundreds of millions in losses each quarter. A company the size of Google may not be gravely impacted by such losses but once the patents were out of the way, Motorola simply was not an affordable enterprise.
So now, Google is selling off the company to Lenovo for a $2.91 billion deal. Naturally, Google gets to keep a ‘vast majority’ of Motorola’s patents, which is what Google bought it for in the first place. Lenovo still stands to gain much from this deal since it will be able to license Google-owned Motorola patents after the acquisition.
Although Motorola is very hopeful with the acquisition, it remains to be seen how Lenovo will weigh on the company once in charge. According to Motorola Mobility’s CEO Dennis Woodside, “As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this.”