Chennai: Google which just signed a cross licensing deal with Samsung. It was speculated that Google will give competition for Samsung in the hardware (mobile) market in spite of signing cross licensing deal through its subsidiary Motorola Mobility. However Google has drawn curtains on the issue by selling off its mobile division to Lenovo. The Chinese manufacturer had previously acquired IBM’s industry-standard server business for $2.3 billion.
In a $2.91 billion deal which is partly in cash, stock and deferred payments leaves Google with a 5% stake in Lenovo. It can be remembered that Google had brought hardware division from Motorola in its highest acquisition costing $12.5 billion, The Times of India reports. The difference of amount between the buying and selling off the mobile division is visibly substantial. The Motorola buy out decision did not go down too well with Google’s investors and it is a setback for its board of directors and co-founder, Larry Page to retreat after just a couple of years.
"Google's mission is to connect as many people as possible to internet, Motorola is a hardware manifestation of this goal. We want to build devices that connect millions of new users to internet and want to do it in a way that doesn't compromise quality of products and user experience," Steve Sinclair, vice-president of global marketing at Motorola Mobility, had told at the time of Motorola acquisition. Google had gone through with that deal keeping in mind Motorola’s trove of around 17,000 patents.
Meanwhile, the release of Moto G handset in India will go on as per schedule, says Motorola. "The deal has yet to be approved in the US or China, and this usually takes time. So until then, it's business as usual," Google CEO Larry Page wrote in his blog. A Motorola executive joined the chorus by saying, "India plans are still on, India is still important to us."
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