MOUNTAIN VIEW, Calif., Jan. 29 (UPI) -- Three years after acquiring it Google is reportedly selling Motorola Mobility to Chinese PC-maker Lenovo for a paltry $2.91 billion.
This is far lower than the $12.5 billion Google paid for Motorola Mobility, the consumer division which was split from the parent company and sold to Google. According to a source speaking to TechCrunch, Google has been wanting to sell the loss-making asset but had to wait for tax purposes.
The Motorola division lost $248 million in the last quarter alone, compared to the $192 million loss in the same quarter for the previous year. This negative trend was possibly the reason behind the sale.
This completes Lenovo's ambitions to acquire a cell phone business, after it was rumored to have attempted to purchase the struggling Blackberry. With Motorola, Lenovo now has a brand that comes with a vast distribution system and a manufacturing arm, though Google will reportedly retain most of Motorola's patents.
Lenovo is not new to acquiring companies and growing its business. In 2005, they acquired IBM's personal computer division for $1.25 billion. The purchase made it the third largest PC-maker, but leveraging the IBM brand, Lenovo surpassed HP to become the largest shipper of PCs.