In an important blog post for “Android users everywhere”, Google’s CEO Larry Page has confirmed that it is selling Motorola to Lenovo for 2.91 billion. The reason he cited for this is, it would not only help Lenovo in the smartphone race, but also let his company focus on driving innovation within the Android ecosystem.
The $2.91 billion that Google is getting is just a fraction of what it paid for Motorola back in 2011. Back then, Page said that the acquisition would be used to “supercharge the Android ecosystem”. The Google-owned, but independent Motorola wound up launching several smartphones that have received quite a bit of attention, including the Moto X.
News of the acquisition first broke when sources told several publications, including the New York Times, that a deal was impending between Google and Lenovo.
The breakdown of Google’s acquisition is :-
The purchase price is approximately US$2.91 billion (subject to certain adjustments), including US$1.41 billion paid at close, comprised of US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a share cap/floor). The remaining US$1.5 billion will be paid in the form of a three-year promissory note.
However, Lenovo will be receiving a license to the Google-owned Motorola patents and other intellectual property, along with 2,000 patent assets.