Google Boosted by Motorola Mobility Sale to Lenovo

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Jan. 30 (Bloomberg) -- Bloomberg's Alex Sherman reports on Google's sale of Motorola to Lenovo on Bloomberg Television's "Money Moves." (Source: Bloomberg)

It is the largest in the world.

The novo is betting harder on this mobile unit.

What is funny is that as we progress technologically, pc's and mobile phones, they become the same thing when you think about how you use your smartphone or tablet.

It is not that big of a stretch that lenovo would want to make a bigger impact, particularly in the u.s. and western europe, where motorola has more of a foot hold.

They are stronger in emerging markets.

This deal, $2.9 billion, bid by the famous motorola brand.

The luster has gone off of the brand to say the least, but google gets out of the hardware unit, and they can focus on android software.

Alex, those are the moving parts.

The patents have not been the best deal in the world for google.

There's been a world of hassle -- paperwork, litigation.

Some of it is needed, unfortunately.

There is a hassle, high legal fees with lawsuits from apple and microsoft, but google felt they needed the patents, and a part of this is google holds onto a majority of the patents.

There is value there that will increase as the years go by, but other than that, google gives up the entirety of the handset business which will make a company like samsung happy because they provide for samsung and they will no longer have a division within the company making a competing product.

What does this mean overall for the vision of google?

Google is making a transition away from the handset industry, but it is not that much of a surprise because motorola was such a little part of google to begin with.

It could be considered a win- win, which is why you see the stock up today.

Google gets compensation, and it also goes to lenovo, who could potentially make the motorola brand a stronger brand.

Google may now well, and that is why investors are pushing the stock higher even though they spent over $12 billion on motorola a few years ago, and this transaction is only $3 billion.

Alex sherman.

Thank you.

This text has been automatically generated. It may not be 100% accurate.


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