Lenovo is tipped to be acquiring Motorola Mobility from Google for a deal estimated to be close to $3 billion. The announcement could come in the next few hours, Reuters reports. Google had acquired Motorola for $12.5 billion in August 2011, but the deal was completed in 2012. If the report turns out to be true, it would be barely two years before Google sold off Motorola, cementing the fact that it bought the company for its patents.
The sale would be good for Google, considering the handset division has not delivered much in terms of either shipments or revenues and has been a distraction. Despite having products like the Moto X and Moto G, Motorola has not been able to scale up to be a major player in the smartphone market. This could also explain why Motorola delayed the launch of the Moto G in India.
The acquisition would be good for Lenovo, which has been trying to crack open the US smartphone market. Lenovo was also one of the companies that was interested in BlackBerry but was reportedly turned down over security concerns owing to its Chinese origins.
It remains to be seen whether Lenovo continues with the Motorola brand name once the deal is completed or whether this would be the end of the iconic brand that invented the cellphone.