Financial News

  • 31 January 2014, 6:17

Google Sells Motorola To Lenovo For $2.9bn

Google has announced it is selling its Motorola Mobility smartphone business to Lenovo in a $2.9bn (£1.75bn) deal.

The technology firm bought the company less than two years ago for $12.5bn (£7.54bn) as a way of boosting its Android operating system.

It has since slashed its workforce from 20,000 to less than 4,000 and racked up losses of nearly $2bn (£1.2bn).

Larry Page, chief executive of Google, described the deal with Lenovo, which is best known for its range of computers, as an "important move for Android users".

He also said his company would retain most of Motorola's patents.

"The smartphone market is super competitive and to thrive it helps to be all-in when it comes to making mobile devices," Mr Page said.

"We believe that Motorola will be better served by Lenovo, which has a rapidly growing smartphone business and is the largest and fastest-growing PC manufacturer in the world.

"This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere."

Under Google, Motorola launched a number of value smartphones, including the Moto G and the Moto X.

It also makes baby monitors, corded and cordless phones and fitness accessories.

The Lenovo deal is yet to be approved in either the US or China and Mr Page warned this "usually takes time".

"Until then, it's business as usual," he said.

"I'm phenomenally impressed with everything the Motorola team has achieved and confident that with Lenovo as a partner, Motorola will build more and more great products for people everywhere."

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