Internet company Google will be selling Motorola mobility to Chinese brand Lenovo for $2.91 billions and this will boost the Chinese company to make a bigger market in the United States. The deal was announced on Wednesday comes less than two years after Google bought Motorola Mobility for $12.4 billion in the biggest acquisition ever by Google in 15 years.
“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,” Lenovo CEO Yang Yuanqing said in a statement. This is Lenovo's second high-profile deal this month. Last week Lenove made official of the plans to buy a major piece of IBM Corp.'s computer server business for $2.3 billion. Lenovo will pay Google $660 million in cash and $750 million in stock, while the remaining $1.5 billion will be paid out over three years.
As soon as the announcement was made Google shares were up by 2.2% however trade analysts feel that it is the biggest and most expensive mistake by Google. Lenovo will now compete with Apple and Samsung in US in the smartphone market.