Google has sold mobile phone company Motorola to Chinese computer company Lenovo for £1.8 billion, despite paying $12.5 billion for the firm less than two years ago.
Lenovo, the largest and fastest growing PC manufacturer in the world, has purchased the declining mobile company with the aim of upping their smartphone offering.
Google’s CEO Larry Page announced the sale on their blog. He explained that Google will keep the majority of Motorola’s patents including the entire Android system: ‘This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere. As a side note, this does not signal a larger shift for our other hardware efforts. The dynamics and maturity of the wearable and home markets, for example, are very different from that of the mobile industry. We’re excited by the opportunities to build amazing new products for users within these emerging ecosystems.’
This is Lenovo’s second major purchase in a matter of weeks, previously buying IBM’S low-end server company for $2.3 billion.
Yang Yuanqing, chairman and CEO of Lenovo, commented on the deal: “The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space.
“We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business. Lenovo has a proven track record of successfully embracing and strengthening great brands – as we did with IBM’s Think brand – and smoothly and efficiently integrating companies around-the-world. I am confident we will be successful with this process, and that our companies will not only maintain our current momentum in the market, but also build a strong foundation for the future.”
The deal has yet to be approved in the U.S. or China.
