In the eyes of consumers, Google owned Motorola Mobility is doing very well, but a quick look at their balance sheet shows they are in fact far from a healthy company, which could be why rumours of an acquisition by Lenovo have stirred up.
Google bought the struggling mobile phone company back in 2012 for the princely some of $12.5billion. Since Google took the lead the company have produced popular smartphones the Moto X and Moto G, both of which are noted for their low-price, good design and excellent features. However, even with these models on the market the company is struggling to make profit.
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Reuters are now reporting that Chinaâs Lenovo have been in talks with Google to acquire Motorola Mobility and are nearing a deal which will see Lenovo hand over $3 billion in cash and stocks to Google.
With shrinking PC sales, Lenovo desperately need to boost its own smartphone business which has also struggled despite interesting launches which as the K900, Vibe X and Vibe Z. Interestingly this isnât the first time Lenovo have been linked to acquisition rumours, mid way through 2013 it was rumoured they were interested in purchasing Blackberry, and later 2013 we heard news that HTC was a possible candidate!
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Now is true, Lenovo is the new owner of Motorola for a 2,5 Billion Transaction. Lenovo now have a good brand in his hands now, let’s see what they gonna do.
Probably ruin it, their record on phone support is awful, and I don’t see that changing, such a lost for the industry.
Not really, Moto hasn’t made a truly GREAT handset since the original Droid Razr. Good on Google to cut their losses. But only $2.91 billion for a company that Google mainly bought for the patents is strange, are there more details of the contract? Like maybe google getting a license deal on those patents?
Ahh, nevermind, just read the bbc article, Google sold Motorola separately while keeping the patents. Really smart move. And maybe Lenovo will finally start making competitive phones after this.
Lenovo has already confirmed the purchase for $2.91 billion on Wednesday.