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Google To Sell Motorola Unit To Lenovo In $2.9Bn Deal

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http://www.theguardian.com/technology/2014/jan/29/google-motorola-lenovo-sale

Google announced Wednesday it was selling its Motorola Mobility smartphone unit to Lenovo for about $2.9bn, just two years after the search giant snapped up the company in its largest ever deal.

Google paid $12.5bn for the Moto X and Moto G smartphone manufacturer in 2011. The acquisition, Google’s largest by far, came after Larry Page, Google's co-founder, took back day-to-day running of the company. Lenovo will pay $660m in cash, $750m in Lenovo shares, plus a $1.5bn three-year promissory note.

While the purchase was seen as a strategic move to build Google's mobile business it has been unpopular with shareholders and analysts. Motorola has continued to lose money and sales of its new flagship phone the Moto X have disappointed.

The sale looks like a major embarrassment for the company and Page. But while it is jettisoning the mobile manufacturer it will keep the vast majority of the 17,000 Motorola Mobility patents it acquired with the purchase. Patents have become a key battleground among tech firms – especially in mobile. Lenovo will keep some patent assets and the Motorola Mobility brand and trademark.

A financial disaster or a smart tax move to reduce future liabilities?

Did google hugely overpay for Motorola? Would it have been better going for Blackberry or Nokia?

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maybe the patents are where the real value is anyway

and the only way to get them was to buy the lot and then carve it up

not as if google had to get the begging bowl out to fund the purchase was it?

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Interesting financing for that deal - looks like consideration of cash, shares and I guess a loan. One for the accountants structuring the deal in best way.

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http://www.theguardian.com/technology/2014/jan/29/google-motorola-lenovo-sale

A financial disaster or a smart tax move to reduce future liabilities?

Did google hugely overpay for Motorola? Would it have been better going for Blackberry or Nokia?

Motorola had $2.9bn (?) in cash when bought, they sold the home unit for $2.35bn, are keeping 15,000 of the 17,000 patents and some of the staff so a loss overall (depending on value of patents) but perhaps not as bad as the headlines suggest

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