Google is selling Motorola's smartphone business to Lenovo for $2.9 billion, a price that makes Google's biggest acquisition look like its most expensive mistake.
The deal announced on Wednesday will rid Google Inc. of a financial headache that has plagued the internet company since buying Motorola Mobility for $12.4 billion in 2012.Motorola has lost nearly $2 billion since Google took over, while trimming its workforce from 20,000 to 3,800.
Google had previously recovered some of the money that it spent on Motorola by selling the company's set-top operations last year to Arris Group Inc. for $2.35 billion. Google is also keeping most of the patents that came with the Motorola purchase.
It's unclear if Google will have to absorb a charge to account for the difference between what it paid for Motorola Mobility and what it is getting back. The Mountain View, California, company may address the issue Thursday when it announces its fourth-quarter earnings after the market closes.
The deal announced on Wednesday will rid Google Inc. of a financial headache that has plagued the internet company since buying Motorola Mobility for $12.4 billion in 2012.Motorola has lost nearly $2 billion since Google took over, while trimming its workforce from 20,000 to 3,800.
Google had previously recovered some of the money that it spent on Motorola by selling the company's set-top operations last year to Arris Group Inc. for $2.35 billion. Google is also keeping most of the patents that came with the Motorola purchase.
It's unclear if Google will have to absorb a charge to account for the difference between what it paid for Motorola Mobility and what it is getting back. The Mountain View, California, company may address the issue Thursday when it announces its fourth-quarter earnings after the market closes.
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