Google has announced that it would be selling Motorola Mobility division of smartphones which developed the budget Moto G and the Innovative Moto X to Lenovo at price of $2.91 billion.Lenovo will pay Google $1.41 billion when the deal is closed: $660 million in cash and $750 million in shares and the remaining US$1.5 billion will be paid in the form of a three-year promissory note.

"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,We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business. Lenovo has a proven track record of successfully embracing and strengthening great brands – as we did with IBM’s Think brand – and smoothly and efficiently integrating companies around-the-world. I am confident we will be successful with this process, and that our companies will not only maintain our current momentum in the market, but also build a strong foundation for the future.”-Yang Yuanqing, chairman and CEO of Lenovo

The internet giant had acquired Motorola back in 2012 at hefty price of $12.5 billion and has lost $2 billion dollars since it's acquisition.Lenovo will get the Motorola brand as well as its portfolio of device including the Moto X and Moto G.In addition Lenovo will receive more than 2,000 patents while Google will retain a vast majority of patents to defend the entire Android ecosystem.

 “As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this,”-Dennis Woodside, CEO, Motorola Mobility.

The deal would be successful as Lenovo will gain better ranking in the smartphone market and will be more of global brand.Lenovo smartphones had been a hit in Chinese but have been slow in other markets of the world like U.S and Latin America.Last week,Lenovo had bought IBM's server business for $2.3 billion totaling to $5.2 billion. In 2005,Lenovo had bought IBM Thinkpad brand for $1.25 billion making it's way into the world's largest PC maker worldwide.

“Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere”-Larry Page, CEO, Google. 

Google has said that it will focus on software rather than devices.Globally Lenovo has ranked 5th in 2013 with market share of 4.5 percent according to IDC.The biggest benefit for Lenovo will be would be its better presence in the U.S market.Google will also be benefited as it will be able to the patents and avoid any major loss. What do you think of this acquisition? Are you shocked to rather fact that Google sold Motorola or happy as Lenovo would be able to make better smartphones?