Tomahawk, WI 02/13/2014 (BasicsMedia) – A few years ago, in 2012 to be precise, Google Inc (NASDAQ:GOOG) bid for and purchased Motorola Mobility for $40 per share.  Fast forward to 2014, and Google Inc has announced that it will sell Motorola Mobility. The question most investors are asking is how Google could pay $13 billion for Motorola, yet only sell it for $2.91 billion.  No matter how you look at this issue, it is difficult to ignore the fact that Google paid more for Motorola than it will make once it finalizes this transaction with Lenovo. Motorola was Google’s biggest acquisition ever, but has the company profited from this deal? Has Google benefited from its acquisition of Motorola?

It would take a very optimistic person to say that Google Inc (NASDAQ:GOOG) profited from its acquisition of Motorola, not unless you are privy to factors that other shareholders and investors do not have. When Google acquired Motorola, it effectively transitioned from a search-based and software-oriented company, to one that deals as a maker of consumer gadgets. Lenovo’s intentions to buy Motorola from Google is just but the latest in a long string of acquisitions of US technology firms that it has been carrying out for quite sometime now. Lenovo already has the reputation of being the largest maker of personal computers in the world. This Chinese firm wants more.

In buying Motorola from Google Inc (NASDAQ:GOOG), Lenovo will pay $1.4 billion in cash. The remainder of $1.5 billion will be paid as promissory note for the next three years. However, with this deal, Google will still enjoy the majority share in Motorola’s patent portfolio. Lenovo will only be entitled to the intellectual property license. Lenovo is more than pleased with this deal, since it allows the company to diversity from its core business of making personal computers. With this acquisition, Lenovo will now build its enterprise business, while shifting into the mobile business, which is one of the fastest growing globally.

However, from Lenovo’s perspective, it seems that investors are not too happy or excited with this new deal. As proof of their displeasure, the company’s shareholders contrived to drive the company’s stock down, which is the lowest level it has reached in the last 19 months. On the other hand, Google Inc (NASDAQ:GOOG) says that it achieved what it wanted when it made Motorola its biggest acquisition ever, a couple of years ago. The new deal gives Google a stake into Lenovo, which it says will augur well for its overall business plans and operations. Google says that it buys new entities for different reasons, which may not always be obvious to the shareholders.

In purely financial terms, Google Inc (NASDAQ:GOOG) took a beating when it paid $13 billion for Motorola Mobility, and only received $2.91 billion when selling it to Lenovo. However, the company says it gained a lot in terms of patent assets, which it says it paid between $2.5 billion and $3.5 billion to acquire. The patents have been beneficial to Google in terms of helping it to increase its revenue, and will probably continue to do the same going forward.

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