Google confirmed on its site that it has sold Motorola for $2.91 billion, consisting of $660 million in cash and $750 million in Lenovo shares, with the remaining $1.5 billion paid in the form of a three-year promissory note. Reuters earlier reported on the deal.
Lenovo gets the Motorola brand, as well as its portfolio of devices, including the Moto X and Moto G. In addition, it will also receive more than 2,000 patent assets, while Google will retain control of a majority of the patents it originally obtained when it acquired Motorola several years ago.
A deal instantly gives Lenovo, which has a thriving smartphone business in China but few other places, an established global brand. Google, meanwhile, will shed a business that has continually dragged down its profits.
The deal marks one of the worst investments in Google's history. In 2012, Google completed its acquisition of Motorola Mobility for $12.5 billion. At the time, it was thought that the primary reason for the acquisition was the treasure trove of Motorola patents that would help Google defend it and its partners against Apple.
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