Google sells Motorola Mobility to Lenovo for $2.91 billion

David January 30, 2014 0
Google sells Motorola Mobility to Lenovo for $2.91 billion

The past two years between Google and Motorola have been odd to say the least, the two companies have tried to remain as independent from one another as possible, with Google not making any moves to stop the neutrality on Android.

For two straight years, Motorola has reported losses, yet Google has continued to stick by the $12.5 billion acquisition, despite the major reason, Motorola’s patent portfolio, not showing excellent results and being overvalued by Google.

moto x developer

Yesterday, Google announced they were selling Motorola Mobility to Chinese electronics manufacturer Lenovo, for $2.91 billion. This is a significant loss for Google, but the company will keep most of Motorola’s patent portfolio.

Lenovo has been looking to crack the U.S smartphone market for quite some time now and this is the perfect decision, considering the Moto X did incredibly well in the U.S last year, gaining around 500,000 sales.

It should be noted that this acquisition comes at a time where Google and Samsung have just made a ten year patent licensing agreement. This deal may have caused Samsung to rethink their customisation on Android.

Google looks to be reigning in customisation on their operating system and is starting to apply more pressure, while also offering more opportunity and freedom to developers.

Motorola was a burden for Google and we wonder what Lenovo will do to fix the problems. Changing the design and brand of the Moto X could destroy the brand awareness in the U.S, which is at an all time high.

We believe Lenovo will strip back a lot of the issues, the Chinese company is known for running a tight shift in the manufacturing line and may be able to take away cost heavy factors that have plagued Motorola.

In our view, giving Lenovo a chance in the U.S market and more of a face worldwide is good news for Android. It means Samsung will need to improve to keep market share globally and puts other manufacturers like HTC and Sony on the back foot.

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