Google is selling Motorola Mobility to Lenovo. By acquiring Motorola, the Chinese smartphone manufacturer is seeking for a major presence in the U.S. market.
Lenovo buys Motorola for $2.91 billion in cash and stock. However, Google retains ownership of the majority of Motorola's patents, while 2,000 patents and a license on the remaining patents will go to Lenovo. At the deal's closing, Lenovo pays Google $660 million in cash and $750 million in stock, while the remaining $1.5 billion is paid out over three years.
In a statement, Google that acquired Motorola back in 2012, said the smartphone market was "super competitive" and Motorola is "better served by Lenovo". The purchase makes Lenovo the world's third-largest smartphone maker behind Samsung and Apple.