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Google to sell Motorola to Lenovo after only 2 years

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These are some breaking news. After an official confidential memo has leaked to the public, Google is getting rid of Motorola for a discounted $2.91 billion. Seems like a lot to you? It is not – Google did buy Motorola for $12.5 Billion only 2 years ago.  Apparently Google is to hold on to the vast majority of the patents.  Again, you have to ask yourself the question, what are these patents (many of them outdated, considering how fast the mobile world moves) really worth? Surely not the difference of  $9.59 Billion.
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For Lenovo, however, the purchase is a catch to compete with the likes of Samsung in the mobile space. I hope they will continue the comeback road of Motorola which has brought out a quality phone at a good price with the Moto X last year. When they bought the notebook/laptop division from IBM in 2005, they actually maintained the quality for enterprise laptops to a large extent.

Google stock was down slightly after hours, but I expect that it will actually lose more ground tomorrow as investors were counting on Google expanding into the headset hardware market which now clearly is not happening as planned.

Lenovo on the other hand I expect to make a big leap in the next days as investors will gain confidence.

What do you think?

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