There aren’t rumors for everything that happens in the technology world. Motorola, which was bought by Google in 2012 in May 2012 for $12 bn, has been sold to Lenovo for $3 billion. A tweet from the official Google handle on Twitter confirmed that this news wasn’t a hoax.
Google had sold the Set-top box division of Motorola for $2 billlion earlier. And the fact that Google was facing huge quarterly losses thanks to Motorola and that Google still keeps to get all but 2000 Motorola patents makes the deal not too bad for Google. Google investors were reportedly repeatedly asking questions about what was Google doing to bring down the losses.
Personally, I shall miss Google’s strategy to price Motorola’s handsets at insanely low prices, just like it does with the Nexus series. It would be interesting to see whether Lenovo continues that tradition of low pricing though it has no reason to do so as Google’s vision was to bring in as many users on the Android ecosystem even if it didn’t earn a single penny of a handset it sold.
Also, this sale will allow Lenovo to become a stronger competitor to Samsung in the Android segment, thus helping Google to make sure that no single manufacturer has monopoly. So, it might seem like Google is taking a straight forward $7 billion loss by making this sale, this isn’t the case and, we hope, will help Google to stay on its vision, whatever that is.
Here’s a good report which states the possible reasons why Google decided to sell Motorola.
We’ve just signed an agreement to sell Motorola to Lenovo for $2.91 billion: http://t.co/PKDXrTq6Oe pic.twitter.com/vLcDBXlvIh
— A Googler (@google) January 29, 2014
Personally, I shall miss Google’s strategy to price Motorola’s handsets at insanely low prices, just like it does with the Nexus series. It would be interesting to see whether Lenovo continues that tradition of low pricing though it has no reason to do so as Google’s vision was to bring in as many users on the Android ecosystem even if it didn’t earn a single penny of a handset it sold.
Also, this sale will allow Lenovo to become a stronger competitor to Samsung in the Android segment, thus helping Google to make sure that no single manufacturer has monopoly. So, it might seem like Google is taking a straight forward $7 billion loss by making this sale, this isn’t the case and, we hope, will help Google to stay on its vision, whatever that is.
Here’s a good report which states the possible reasons why Google decided to sell Motorola.
