Google is selling Motorola's smartphone business to Lenovo for $2.9 billion, a price that makes Google's biggest acquisition look like its most expensive mistake.
The deal announced Wednesday will rid Google of a financial headache that has plagued the Internet company since buying Motorola Mobility for $12.4 billion in 2012. Motorola has lost nearly $2 billion since Google took over, while trimming its workforce from 20,000 to 3,800.
While Google is reversing courses, China's Lenovo Group is gearing up for a major expansion. Already the world's largest maker of personal computers, Lenovo now appears determined to become a bigger player in smartphones as more people rely on them instead of laptop and desktop computers to go online.
It also marks Lenovo's second high-profile deal this month. The company announced plans last week to buy a major piece of IBM's computer server business for $2.3 billion.