Two years ago Google saw an opportunity to purchase a somewhat dwindling company as part of a plan to expand their hardware division of computing.
In 2012 Google confirmed that they had purchased Motorola Mobility for $13 billion. With the company struggling to take market share from Samsung and Apple, Google had hopes for Motorola to become more than just another smartphone company.
As the new redesigned Motorola brand released two new customizable phones, the Moto X and Moto G, the hit was somewhat successful as customers enjoyed having a personalized phone. However, even with a massive amount of advertising, Motorola just couldn’t regain the market share they once had all those years ago.
In 2013 Motorola announced that they have been operating at a loss of $248 million. As profits are nowhere to be found and Motorola is draining the life and money out of Google, Google finally raised the white flag and sold off Motorola Mobility.
With the New Year, Google sold Motorola Mobility to Chinese PC manufacturer, Lenovo, at a massive loss by selling the company for $2.91 billion. The breakdown of the costs are as follows: $660 million in cash, $750 million in Lenovo shares, and $1.5 billion to be paid off in the form of a three-year promissory note.
In addition to the sale, Lenovo would only agree to the deal if they gained full control of the more than 2,000 patents, Moto X and Moto G. Lenovo will also be taking 100% for any work Google has done for Motorola.
This easily makes world history for the worst investment in Google History. Google didn’t have much to say on the topic other than: “Lenovo intends to keep Motorola’s distinct brand identity—just as they did when they acquired ThinkPad from IBM in 2005.”
Anybody can easily see the upcoming future of Motorola, as Lenovo will move all production from the United States to China as well as any workers. As the era of the smartphone and cell phone was created by Motorola; it is sad to see them leave the US and I would be surprised if the US ever sees another Motorola branded smartphone.
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