Google announced on Wednesday that it has sold its Motorola smartphone business to PC manufacturer Lenovo for $2.9 billion.
Google, which bought the Motorola division in 2012 for $12.5 billion, ends the company's attempt to develop mobile devices. The sale signifies a $9.6 billion loss for Google.
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“Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem," Google CEO Larry Page said in a press release. "This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere."
The move from Lenovo aims to strengthen their position in the smartphone market and pick up its presence especially in North America and Latin America. The unit currently makes the popular Moto X and Moto G smartphones.
Google will retain majority ownership of Motorola's Mobility patent portfolio, but Lenovo will receive a license to this and gain about 2,000 patent assets.
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