Google Selling Motorola Mobility to Lenovo for $2.91 Billion

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jan 29, 2014.

  1. MacRumors macrumors bot

    MacRumors

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    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.

    [​IMG]
    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.
    Article Link: Google Selling Motorola Mobility to Lenovo for $2.91 Billion
     
  2. Sky Blue Guest

    Sky Blue

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  3. proline macrumors 6502a

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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.
     
  4. avanpelt macrumors 68000

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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.
     
  5. Solomani macrumors 68020

    Solomani

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    #5
    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. :rolleyes:
     
  6. Badandy macrumors 68040

    Badandy

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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.
     
  7. afro-ninja macrumors member

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    #7
    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.
     
  8. madcran macrumors newbie

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    #8
    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.
     
  9. AngerDanger macrumors 68020

    AngerDanger

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    "I'm open, Lenovo, pass the Motorola to me next!" :D
     
  10. xNYMetsx macrumors 6502

    xNYMetsx

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  11. the8thark macrumors 68040

    the8thark

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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.
     
  12. dlewis23 macrumors 6502a

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  13. Cuban Missles macrumors 68040

    Cuban Missles

    #13
    Wow!:eek:

    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.
     
  14. brianbobcat macrumors regular

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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.
     
  15. jrswizzle macrumors 603

    jrswizzle

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    #15
    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....
     
  16. koppie644 macrumors regular

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    #16
    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, :D
     
  17. daneoni macrumors G4

    daneoni

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    #17
    Oh dear...

    [​IMG]

    So Lenovo is now in the Enterprise, Consumer and Mobile space.
     
  18. Jessica Lares macrumors G3

    Jessica Lares

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    #18
    FYI - When Google first bought them, they gave me the value of the shares.
     
  19. FakeWozniak macrumors 6502

    FakeWozniak

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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.
     
  20. herocero macrumors regular

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    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.
     
  21. bushido Suspended

    bushido

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    #21
    well damn, so much for guaranteed Moto android updates :-/
     
  22. musika macrumors 65816

    musika

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  23. sinsin07, Jan 29, 2014
    Last edited: Jan 29, 2014

    sinsin07 macrumors 68020

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    They should of "googled"' Motorola before purchasing them.
     
  24. kerryb macrumors regular

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    #24
    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.
     
  25. pgiguere1 macrumors 68020

    pgiguere1

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