You knew it wouldn't last: Google will dump Motorola, its largest-ever acquisition, after only 16 months.
It's the end of Google's dalliance with cellphone manufacturing. The buyer: China's Lenovo Group will pay almost $3 billion for the Motorola handset division that makes the Moto X and Moto G smartphones...an obvious attempt by latecomer Lenovo to buy its way into a better position in the competitive smartphone market.
Software giant Google bought Motorola's hardware company for $12.5 billion but sells it for only $660 million in cash, $750 million worth of Lenovo shares (a good bet) and a 3-year promissory note worth $1.5 billion. Google hangs onto "most" patents, but grants Lenovo usage of some.
In 2012, Google sold off Motorola Home, the set-top boxes and cable modems division, to Arris for $2.35 billion. That still makes Google's net loss larger than the value of many successful IT or telecom companies (about the value of Maroc Telecom of Morocco or E-Plus Group, third largest network operator in Germany).
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