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How Google Sold Motorola At A Loss And Still Won

Google decided to sell parts of Motorola Mobility, it had bought for $12.5 billion to Lenovo for $2.9 billion and at a glance it looks like Google has suffered a big loss with the whole deal, but the truth couldn't be more different. This deal will help Lenovo get a stronger foothold in US market and help eliminate competition for its lower end products in markets such as India and South East Asia. However, Google has a bigger goal in mind and it will be able to achieve that with this move. The big win: Google will hold on to Advance Technology Group that's working on Ara project. This group has been building modular phones, the components of which can be easily upgraded much like in a PC. By holding on to this unit, Google has ensured that it has an R&D team working on mobile phones that can now start working on Nexus line of devices. Since it no longer controls Motorola, this unit can be rolled into the Google juggernaut. SEC or FCC cannot raise anti-competitive concerns either since Google then no longer manufactures its own devices. If Motorola was part of Google, the company would not have been able to make such a move without all its partners crying foul. After Google purchased of Motorola, bigger smartphone manufacturers such as Samsung had started working on their own operating systems while LG bought Web OS allegedly to power its smart TVs. If Google can come up with a price sensitive…

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