Google Sells Off the Rest of Motorola Mobility
The Internet search giant owned the maker of smartphones for just two years.
Google said on Wednesday that it will sell its Motorola Mobility unit to Lenovo for $2.9 billion in cash, debt and stock, though Google will retain the majority of Motorola's patents.
Google acquired Motorola Mobility just two years ago for about $9.5 billion, when the company's cash on hand at the time is factored into the sale price, though it sold the asset's set-top business for $2.4 billion a year later.
In the two years since Google acquired Motorola Mobility -- which was spun out of Motorola in 2011 -- the maker of smartphones racked up about $1 billion in losses.
During the regular session on Wednesday, Google shares sunk 1 percent to $1,106.92, but they rose 3 percent after the closing bell when the deal was made public in a filing with the U.S. Securities and Exchange Commission.
Lenovo is a Chinese multinational company that records about $30 billion in annual revenue by selling smartphones, computers, tablets, printers, televisions and other technology.