Seeking Alpha

Reports: Google selling Motorola phone unit to Lenovo

  • Reuters and China Daily both report Lenovo (LNVGY) is set to buy Motorola Mobility's phone unit from Google (GOOG). The former says the price tag is close to $3B; the latter says it's "at least" $2B. China Daily says the deal will be announced tomorrow morning in Beijing.
  • Motorola Mobility has been bleeding share and (in spite of huge job cuts) posting big losses since Google's 2011 acquisition, as products such as the Moto X and Moto G fail to produce a turnaround in the face of stiff high-end competition from Samsung and Apple, and stiff low-end competition from a slew of Asian OEMs (including Lenovo).
  • Google has already sold Motorola's set-top/cable infrastructure unit to Arris for $2.35B.  The company will presumably hold onto Motorola's sizable mobile patent portfolio.
  • Investors are pleased, GOOG +1.2% AH. Q4 results are due tomorrow.
Comments (6)
  • Here comes the plastic Motorola
    29 Jan, 04:44 PM Reply Like
  • Hilarious. Google loses 10Bn on Motorola sale and it goes up $25! Good move for Android's future.
    29 Jan, 04:50 PM Reply Like
  • Humble..... Exactly! Although I knew Moto whatever was a dud, this is the first time that I read the fact recently. Not sure what this means for GOOG's earnings tomorrow but doesn't smell good to me.

     

    GOOG paid 12.5b for Motorola I think in 2011. Maybe patents were worth it.?!
    29 Jan, 05:10 PM Reply Like
  • Google ate billions on this sale. Basically four Nest pick-ups worth.

     

    I wonder if Lenovo is sticking with Android on the Moto phones? They could offer many mobile OS platforms on the phones to get more sales. That is not great for Google ads, since the current default Google apps delivered massive ads. No Google apps on the Lenovo phones means less Google ad clicks. I guess the ad sales were a push with the phone revenue losses? Seems Google is $till strongest with the software development and not store sales.

     

    http://yhoo.it/1exWktj
    29 Jan, 05:41 PM Reply Like
  • Your link gives me the impression that Samsung pressured GOOG (due to Moto) to sale Motorola. Both know AAPL is eating their lunch on the high end smartphone arena and they know that their recently announced partnership is a must thing to do.
    29 Jan, 05:50 PM Reply Like
  • Lenovo is aggressively becoming a behemoth!
    30 Jan, 11:02 AM Reply Like
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