Less than two years after acquiring it, Google is ditching Motorola. Chinese electronics maker Lenovo is buying the hardware firm for $2.91 billion.
The acquisition would give Lenovo access to upwards of 10,000 mobile communications patents, and a much larger footing in the smartphone and tablet space, particularly in the U.S. and Europe,China Daily reports.
The loss of Motorola doesn't necessarily mean Google would be exiting the hardware space, though. Google has successfully partnered with a variety of hardware makers its flagship products, including Asus for the Nexus 7 tablet and LG for the Nexus 5. And with Google's recent acquisition of smart thermostat maker Nest, it's still got a hardware maker onboard, and with a recent cross-licensing deal with Samsung, Google has a whole lot of mobile-related IP it can use, too.
Google's official press release sheds more light on the intellectual property situation post-acquisition: 'Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.'
Google originally finalized the acquisition of Motorola Mobility for $12.5 billion in May of 2012 (however, between selling off Moto's set top division and gaining significant tax benefits, the cost to Google was likely much lower). The partnership with Motorola has since produced phones like the Moto X and Moto G, but the unit wasn't especially profitable for Google. Motorola operated at a $248 million loss during the third quarter of 2013, and $192 million the year before.
Updated 2:05 PM PT with the official announcement from Google.
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