Google has sold Motorola to Lenovo for $2.91bn. The sale comes just a few years after having bought the company which makes the Moto X for $12.5bn back in 2011.
For those wondering why the difference in values is so significant Google has confirmed that whilst it is selling Motorola it will be retaining the majority of the company's vast portfolio of patents.
Writing on Google's official blog, CEO Larry Page outlined the reasons why Google was selling Motorola so soon after having bought it:
"The smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices.
"It’s why we believe that Motorola will be better served by Lenovo—which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world."
Despite reportedly investing $500 million in the marketing campaign for the launch of the Moto X Google has been operating Motorola at a loss with the company posting third quarter losses of $248 million in 2013.
Google already has hardware under the guise of the Nexus brand with the Nexus 5 and Nexus 7 so it makes sense to lose what was essentially a non-profitable branch of their business.