That’s quite a come down for Google, which paid $12.5B for Motorola Mobility in 2011 — the biggest deal it had ever made at the time — but couldn’t turn it into a money maker. The unit recorded an operating loss of $248M in last year’s Q3, a 29.2% increase from the period in 2012. Lenovo’s already a mobile phone player in several emerging markets — and now can become a competitor in the U.S., Latin America, and Western Europe. Today’s deal gives the Hong Kong-based computer company a portfolio of products that include the Moto X and Moto G. It scores the Motorola Mobility brand and trademarks as well as “over 2,000 patent assets,” the companies say. Google gets to keep the “vast majority of the Motorola Mobility patent portfolio,” including patent applications and invention disclosures. Google CEO Larry Page says that Lenovo “has the expertise and track record” to become a power among providers of Android-powered phones. Meanwhile Google will “devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.” When he bought Motorola Mobility, Page vowed to “create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.” But the mobile phones remained an also-ran in the U.S. Motorola had 6.7% of the market in November vs 41.2% for Apple’s iPhone and 26.0% for Samsung, according to comScore. Google shares are up 2.6% in after market trading.
Lenovo Agrees To Pay Google $2.9B For Motorola Mobility’s Smartphone Business
What's Hot on Deadline
'X-Men: Apocalypse' Now At $82M+, 'Alice' Taking A Spill With $40M Over 4-Day Memorial Day Holiday - Friday PM Update
Sequel To Cult Sci-Fi Pic 'The Man From Earth' A Go With Vanessa Williams, Sterling Knight Among Cast
Latest Business News
- Indie Producers Say They're Getting Shortchanged By California's Tax Incentives Program
- ‘American Psycho’ Will Close On Broadway Before The Tony Awards At $8.8M Loss
- Viacom’s Battle With Sumner Redstone Could Hurt Credit, S&P Says
- Court Sets June Date For Philippe Dauman’s Case Against Sumner Redstone
- Lionsgate Joins Fox, Par & Uni In Nixing Exhibitor Clearance Requests: What Does This Mean For The Biz?
- Viacom Renews And Expands Carriage Deal With Cox Communications