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Another Big Lenovo Deal

January 30th, 2014 - 10:35 am

They’re picking up Motorola Mobility from Google:

Lenovo Group Ltd’s purchase of the Motorola Mobility business, a money-losing subsidiary owned by Google Inc, will give the Chinese company advantages in exploring the global tablet and smartphone markets, analysts said.

The comments came after Lenovo said that it will announce a “major acquisition deal” on Thursday.

The deal, worth at least $2 billion, will include a large volume of mobile communications patents currently held by the US company, a person familiar with the matter told China Daily.

Google is smart to get what they can out of Moto, while they can. They’ve sunk billions into that pit trying to “protect” Android, yet still make more income off of search on Apple’s iOS.

As Greg Hill reminds me, Google paid $12 billion for Moto not all that long ago.

It seems almost cruel to remind you, but here’s what Google said about the deal at the time.

DEAL

That didn’t quite pan out.

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All Comments   (4)
All Comments   (4)
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Having lived through something like this, I can sum it up in one word:

Culture.

Motorola is an old smokestack company - like GM, Lucent (AT&T), et al.
I'm sure it was like oil and water them working together.
26 weeks ago
26 weeks ago Link To Comment
So sad to see what has become of Moto. I started there out of college in 1989 - in the semi products sector. My friends were jealous. Moto was cool then.
26 weeks ago
26 weeks ago Link To Comment
Bought for 12 billion, a few years later sell for 2 billion?

Wow! If the person behind that move were in government, I'd say somebody's about to get a big promotion!
26 weeks ago
26 weeks ago Link To Comment
The $10 billion "loss" is likely MUCH smaller if you look at that sales contract. I'd bet money that included in the sale of Moto is a long term license for Google to all the patents and IP.

Any tech world deal that doesn't make sense at first glance probably has something to do with patents. For the big boys it can be cheaper to buy the company than to license everything.
26 weeks ago
26 weeks ago Link To Comment
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