January 29, 2014 6:08pm
Google announced they would take over Motorola Mobility for a massive $12.5 billion in August of 2011. At the time the company stated that “Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”
Now a couple years later, with the Moto X and Moto G being built in the United States and sold around the world, Google has sold off the Motorola handset division to Lenovo. While this transaction came as a surprise to many, the $2.91 billion deal still needs to be approved by regulators in both the United States and China.
On the company blog, Google’s CEO Larry Page said that while the “Motorola team have done a tremendous job reinventing the company,” this new direction of Moto “is an important move for Android users everywhere.” Page noted that one of the deciding factors was that “the smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices. It’s why we believe that Motorola will be better served by Lenovo.” That’s a pretty honest statement, even if Google lost money on the Moto handset division. “This move will enable Google to devote our energy to driving innovation across the Android ecosystem,” said Page.
While this transaction came as a surprise to many, the $2.91 billion deal still needs to be approved by regulators in both the United States and China. The good news for those devoted Moto users is that Lenovo intends — key word is intends — to keep “Motorola’s distinct brand identity.”
At one time Lenovo was rumoured to purchase BlackBerry, but it now seems that they believe their money would be better off with Motorola’s design and Google’s Android OS.
Page ended his note declaring that “it’s business as usual.”
Perhaps we’ll see a Motorola Nexus device by Lenovo soon…