Google to Sell Motorola’s Hardware Business to Huawei?
A new, unconfirmed rumor has Google potentially selling Motorola’s handset business to Chinese company Huawei. In fact, Google has apparently already offered to sell its newly acquired asset to Huawei for a “high price.”
The rumor comes from Dennis Berman of the Wall Street Journal and while it’s the first time we’ve heard of such a deal being offered up, it seems fairly credible at this point.
Last year, two things happened at Motorola. One, it was bought by Google for $12.5 billion dollars, a move that many believed and still believe to be patent related and not hardware related. And two, it saw its sales slow down. This is a company that was only able to sell a million tablet devices.
Its handset business slipped considerably too.
And while many believed that Google sweeping in to buy it might lead to some Motorola Nexus devices or, at the very least, a closer working relationship between the two companies, Google made it clear that it wouldn’t play favorites when it came to Android.
Throw in the fact that the company wants to sell Motorola’s cable box division and the fact that Motorola has already ousted former CEO Sanjay Jha, and you get the feeling that there are some major changes afoot for the company.
Huawei has been making a major push in 2012 to become known for more than just making cheap handsets. It has introduced some high profile devices this year including a quad-core Android 4.0 smartphone at CES.
And while Huawei would probably love to purchase Motorola, Google’s asking price might be too high at this point. It would also be an enormous gamble for a company that doesn’t yet have much of a presence here in the United States, a market where Motorola is considered to be among the top three Android manufactures.