Google Sells Off the Rest of Motorola Mobility

Google Logo NEW - H 2012

Google Logo NEW - H 2012

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.

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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.