Lenovo To Buy Motorola Mobility From Google

TechCrunch has confirmed reports that Lenovo is buying Motorola Mobility from Google. This is the division within Google that the company purchased in 2011 for $12.5 billion. Motorola Mobility will go to Lenovo for $2.91 billion.

Of that $2.91 billion, $1.41 billion will be paid at the close of the deal. $660 million will be comprised of US cash and $750 million in Lenovo ordinary shares. The remaining $1.5 billion will be paid in the form of a three-year promissory note.

Well that’s certainly some interesting news to wake up to this morning. It looks like Google will be hanging onto various bits, including the vast patent portfolio and the Advanced Technology Group within Motorola.

Larry Page addressed Google employees in a leaked memo:

… the smartphone market is super competitive, and to thrive it helps to be all in when it comes to making mobile devices. 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.

Well, there you go. Nest in, Motorola out.