The rumor mill was vindicated late Wednesday when Google confirmed it is selling the hardware component of Motorola Mobility to Lenovo.
The deal, which is valued at $2.9 billion, will still allow Google to possess ownership of a wide array of valuable patents that Google obtained during its initial acquisition of Motorola Mobility.
“Lenovo has the expertise and track record to scale Motorola into a major player within the Android ecosystem,” says Larry Page, Google’s CEO, in a formal announcement shared on the Google Blog.
“They have a lot of experience in hardware, and they have global reach,” Page continued. “In addition, Lenovo intends to keep Motorola’s distinct brand identity—just as they did when they acquired ThinkPad from IBM in 2005. Google will retain the vast majority of Motorola’s patents, which we will continue to use to defend the entire Android ecosystem.”
Although the deal has theoretically been done, regulators must approve the agreement before it can close.