Why selling motorola is a win win deal for all?

Google CEO Larry Page with Lenovo CEO Yang Yuanqing.

Many of us woke up to the shocking $2.9 billion sale of Google-owned Motorola Mobility to Lenovo.However according to sources project Ara team(an open-source initiative that will potentially allow consumers to build their own smartphone based on a modular platform) would be left with Google.

Most investors viewed Motorola as an unnecessary drain on Google’s profit, a perspective that was reflected by Wall Street’s reaction to the sale. Google’s stock gained $28.08, or 2.5 percent, to $1,135 in extended trading.  

Gaining control of Motorola’s patents was the main reason Google CEO Larry Page decided to pay so much for Motorola Mobility at a time the smartphone maker was already losing money and market share. Most analysts thought Page had paid too much money for Motorola and questioned why Google wanted to own a smartphone maker at the risk of alienating other mobile device makers that rely on Android. Selling Motorola’s smartphone operations will “enable Google to devote our energy to driving innovation across the Android ecosystem,” Page said in a statement.While Google is backpedaling meanwhile, Lenovo is gearing up for a major expansion. Already the world’s largest maker of personal computers, Lenovo now appears determined to become a bigger player in smartphones as more people would rely on them instead of laptop and desktop computers to go online.

Lenovo already is among the smartphone leaders in its home country of China, but it has been looking for ways to make its presence felt in other markets, especially the US and Latin America.Late in 2013 it was also rumored that Lenovo was a prospective buyer of Blackberry's smartphone's business .Buying Motorola will enable Lenovo to join Apple Inc. as the only major technology companies with global product lines in PCs, smartphones and tablets, putting Lenovo in a better position to become a one-stop shop for companies to buy all their devices from the same vendor.Also Lenovo's CEO Yang yuanqing said in a statement that Dennis woodside would retains his post and Lenovo currently has no plans to lay off any of the employee.