The Tech Bet

Google cuts the cord on its handset business

Christina Medici Scolaro
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In what may seem like the blink of an eye, Google sold its Motorola handset unit less than two years after it bought it.

The Internet search giant bought Motorola's handset arm for $12.5 billion in 2012. It was supposed to be a great pairing of making phones and filing them with the Android operating system, but instead Google is selling the business to Chinese electronics company Lenovo for $2.9 billion.

Some question the motive behind the sale.

"What they've been able to do is extract all of the value out of that relationship that they needed over the last couple of years and now they're letting it go," said Brian Blair, principal at Wedge Partners. "What they needed to acquire Motorola for was its patents."