MOUNTAIN VIEW, Calif., Jan. 29 (UPI) -- U.S. Internet giant Google is selling its handset device unit to Chinese computer maker Lenovo for about $3 billion, an informed source told the New York Times.
The sale, which should be announced soon, would be a ringing defeat for Google, which purchased Motorola Mobility for $12.5 billion in 2011. The sale to Lenovo would include the intellectual property associated with that purchase, the Times reported.
For Lenovo, the purchase represents more market leverage, as it would likely press chip makers for better deals based on the larger orders for chips it will need after the deal goes through, the Times said.
Last week, Lenovo and IBM announced a $2.3 billion deal with the Chinese firm buying IBM's low-end server business.
Lenovo may also be simply aiming to diversify its business in the light of a reduced market for personal computers.
The PC market dropped by 10 percent to 314.5 million computers sold in 2013, IDC reported.
Sources told the Times China's Committee on Foreign Investments in the United States is likely to give Lenovo a green light to buy Google's Mobility unit.