Google announced it reached an agreement with Lenovo to sell the Motorola mobility for $3 billion. Chinese company Lenovo paid Google about a sum of $2.9 billion for the smartphone business with $1.4 billion being paid at the closing of the deal.
The deal was primary due to the fact that google which only bought Motorola in 2011 struggled with making headway with the smartphone after bailing it out from liquidation. Google purchased Motorola earlier with a sum of $12.5 billion which has been in support of android operating system. Larry Page, CEO of Google says “this is an important move for android”.
For Lenovo, the acquisition makes sense on two counts. First, it should fuel its steady rise in the league table of smartphone manufacturer as Lenovo is placed fourth globally due to some mobile research Though Lenovo smartphones has been successful in Asia but it has had difficulty and struggled in North America and in some Latin America. Lenovo says it will retain Motorola’s strong brand in those markets. Yang Yuanqing, the firm’s boss, also touts Lenovo’s “much shorter” product development cycle and ability to cut manufacturing costs through scale efficiencies.
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