January 29, 2014 Last Updated 4:42 pm

Lenovo buys Motorola Mobility from Google for just under $3B

The $12+ billion acquisition of Motorola Mobility turned out not be be such a great investment for Google, and today Lenovo announced that it would take the cellphone maker off their hands – for a price far below what Google paid for it, $2.91 billion.

MotoX-GoogleReuters reported that both parties were represented by investment bankers, so that will cut into the final price, as well.

“The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space,” Yang Yuanqing, chairman and CEO of Lenovo said in the company’s announcement.

Lenovo has been making major investments recently. Just last week the company announced that it would be acquiring IBM’s x86 server business for a price tag of $2.3 billion. The purchase included System x, BladeCenter and Flex System blade servers, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software.

In the early fall last year Lenovo bought CCE, a PC and electronics maker in Brazil, giving the company access to the South American market.

Google, on the other hand, admitted that the smartphone market is, as they said, “super competitive.”

“It’s why we believe that Motorola will be better served by Lenovo—which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere,” Google said in a blog post.

Google said it would retain most of Motorola Mobility’s patents, which many observers felt was the reason for the purchase in the first place. But Google has had a hard time in court defending those patents, so whether they will prove eventually to have been worth the money the company invested is an open question.

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