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Old Jan 29, 2014, 03:23 PM   #1
MacRumors
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Google Selling Motorola Mobility to Lenovo for $2.91 Billion




Google is selling its Motorola Mobility division to Lenovo for $2.91 billion, according to a report from China Daily. Google acquired the company and its then 17,000-strong patent portfolio, along with 7,500 filed patents, in August of 2011 for roughly $12.5 billion.

At the time, Google said Motorola was a "natural fit" for the two companies and that it would "supercharge the entire Android ecosystem". The deal is said to include 10,000 of Motorola Mobility's patents, although it is likely that Google will retain licenses for those patents.

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Lenovo Group Ltd is likely to buy Google Inc's Motorola Mobility business, giving the Chinese company a bigger say in the global tablet and smartphone market.

The acquisition, worth at least $2 billion, will include more than 10,000 mobile communications patents currently held by the United States company, according to a person familiar with the matter.

The deal is expected to be announced on Thursday morning in Beijing.
Google's Motorola Mobility subsidiary has been a money loser for the company in recent quarters, costing the firm $248 million in the most recent quarter. Earlier this month, Google purchased the Tony Fadell-founded Nest for $3.2 billion in cash.

Update: Google has confirmed the acquisition in a blog post, saying "Motorola will be better served by Lenovo". The deal will need to be approved by both the U.S. and Chinese governments.
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This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere. As a side note, this does not signal a larger shift for our other hardware efforts. The dynamics and maturity of the wearable and home markets, for example, are very different from that of the mobile industry. We're excited by the opportunities to build amazing new products for users within these emerging ecosystems.
Article Link: Google Selling Motorola Mobility to Lenovo for $2.91 Billion
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Old Jan 29, 2014, 03:24 PM   #2
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can they sell Nest to someone else?
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Old Jan 29, 2014, 03:25 PM   #3
proline
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Buy high, sell low. Way to take care of the shareholder's money, Google!

This also goes to show that Google's only interest in Moto was that they thought they could weaponize standards essential patents. Once the various judges told them to buzz off, they finally gave up.

Total wasted shareholder money: $15 billion+ when you count the two years of covering Moto's losses, the failed lawsuits, and the discount they gave Lenovo.
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Old Jan 29, 2014, 03:25 PM   #4
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Wow, didn't see that sale coming. I wonder why? All the reviews I've heard about the Moto X have been quite positive.
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Old Jan 29, 2014, 03:26 PM   #5
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Oops. It's not a natural fit any more. It was a money-losing acquisition for Google.

And all the slow-thinkers still wonder why Apple does not rush to acquire smaller companies.
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Old Jan 29, 2014, 03:26 PM   #6
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Massive acquisitions rarely work out for the buyer and yet this is what tons of uninformed people on this site want Apple to do with its spare money it isn't using rather than give it back to the stockholders via an enlarged dividend or buyback.
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Old Jan 29, 2014, 03:26 PM   #7
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This is a shame. The Moto X and Moto G look like some really nice phones, both by the top of their respective Android markets.
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Old Jan 29, 2014, 03:26 PM   #8
madcran
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If you don't create anything after buying a company, how can you expect to make money on it? I might be wrong, but I don't think that under Google's watch that they actually produced a phone worth selling.
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Old Jan 29, 2014, 03:26 PM   #9
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"I'm open, Lenovo, pass the Motorola to me next!"
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Old Jan 29, 2014, 03:27 PM   #10
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Google got bored with them.
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Old Jan 29, 2014, 03:28 PM   #11
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So Google will lose about 9 billion dollars just to keep a few of Motorola's best patents and sell the rest? The Google shareholders would not be happy about Google pissing away their money like this.
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Old Jan 29, 2014, 03:28 PM   #12
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Well that was a waste.
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Old Jan 29, 2014, 03:28 PM   #13
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Wow!

Motorola how far you have fallen. I hope you do better with Lenovo -- they seem to have done okay with the IBM PC unit, so maybe they can help you get un-scroogled.
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Old Jan 29, 2014, 03:28 PM   #14
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I live in Chicago and I wonder what the sale means to the Moto employees here. Google was in the process of closing the suburban office park Motorola Mobility had called home and moving everyone downtown. Will they continue the move to Chicago, or will Lenovo close moto and move all development to their own offices? It does seem a shame since Motorola was really starting to develop quality products again.
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Old Jan 29, 2014, 03:29 PM   #15
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This is extremely perplexing......

I really like the Moto G and have heard wonderful things about the Moto X. It would've been on my Android radar in 2014.

Now Lenovo's getting into the smartphone market?

And I wonder what this does to those rumors about Google axing the Nexus line. Would've made more sense with GPE and Moto devices - now?

Lots of questions....
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Old Jan 29, 2014, 03:29 PM   #16
koppie644
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Lenovo bought the PC business of IBM many years ago, which turned out successful

Now, IBM server, and Motorola

I hope one day they buy Microsoft and Google,
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Old Jan 29, 2014, 03:29 PM   #17
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Oh dear...

Thumb resize.

So Lenovo is now in the Enterprise, Consumer and Mobile space.
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Old Jan 29, 2014, 03:29 PM   #18
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Quote:
Originally Posted by proline View Post
Buy high, sell low. Way to take care of the shareholder's money, Google!
FYI - When Google first bought them, they gave me the value of the shares.
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Old Jan 29, 2014, 03:30 PM   #19
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Surprised it took this long.

This is why advertising costs so much. Because Google has to lose $10B on short sighted strategies.
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Old Jan 29, 2014, 03:31 PM   #20
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Quote:
Originally Posted by the8thark View Post
So Google will lose about 9 billion dollars just to keep a few of Motorola's best patents and sell the rest? The Google shareholders would not be happy about Google pissing away their money like this.
Strictly strategic move to obtain rights to the patents. Just because they didn't release a ton of new products doesn't mean it wasn't worth it. Everyone in the industry has to lawyer up.
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Old Jan 29, 2014, 03:32 PM   #21
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well damn, so much for guaranteed Moto android updates :-/
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Old Jan 29, 2014, 03:32 PM   #22
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Are you kidding me?
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Old Jan 29, 2014, 03:32 PM   #23
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They should of "googled"' Motorola before purchasing them.

Last edited by sinsin07; Jan 29, 2014 at 07:19 PM.
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Old Jan 29, 2014, 03:32 PM   #24
kerryb
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Omg

If this is true Google just dumped some overpriced IP at a huge loss. I would be really pissed if I owned stock in the worlds greatest ad selling company.
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Old Jan 29, 2014, 03:33 PM   #25
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Quote:
Originally Posted by jrswizzle View Post
Now Lenovo's getting into the smartphone market?
They already were, just not in the US.
They're the second most popular smartphone maker in China after Samsung.

They also said they intended to sell in the US:
http://www.theverge.com/2013/5/26/43...-within-a-year
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