Google is selling its Motorola handset division to Lenovo for $2.91 billion, making it the biggest tech deal for the Chinese electronics company. The announcement follows after Lenovo’s offer last week of $2.3 billion for IBM’s low-end server business.
According to the joint deal between the search engine giant and Lenovo, the Chinese company will pay $660 million in cash, $750 million in Lenovo shares, and the remainder of $1.5 billion through a three-year promissory note.
Motorola, the company that developed the well-received Moto X smartphone, was acquired by Google for $12.5 billion back in 2012. However, Google will retain ownership of the majority of Motorola’s mobile patents. Lenovo will be given a license to the mobile company’s portfolio of patents and intellectual property as well as receive 2,000 patent assets, Motorola’s brand, and trademark portfolio.
No word as to when the deal will be finalized has been provided and is still subject to approval from both the U.S. and Chinese authorities.
With this new purchase, Lenovo, the world's biggest PC seller, is strengthening its position in the U.S. that could allow it to begin competing against Apple and Samsung in the smartphone market. But will they succeed? Sound off in the comments below.