Google selling Motorola phone business to Lenovo
SAN FRANCISCO — Google is selling Motorola’s smartphone business to Lenovo for $2.9 billion, a price that makes Google’s biggest acquisition look like its most expensive mistake.
The deal announced Wednesday will rid Google Inc. of a financial headache that has plagued the Internet company since buying Motorola Mobility for $12.4 billion in 2012. Motorola has lost nearly $2 billion since Google took over, while trimming its workforce from 20,000 to 3,800.
While Google is reversing courses, China’s Lenovo Group Ltd. 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 rely on them instead of laptop and desktop computers to go online.
Google is retaining most of Motorola’s portfolio of mobile patents, providing the company with legal protection for its widely used Android software for smartphones and tablet computers.
Fiat, Chrysler to operate under new name
DETROIT — Chrysler and Fiat will be known as Fiat Chrysler Automobiles NV as they move forward as a single company.
Fiat’s board of directors agreed on the new name Wednesday, with headquarters for tax purposes in the United Kingdom. But the board sidestepped the political issue of whether the true headquarters would be in the United States or Italy.
Fiat and Chrysler also announced fourth-quarter and full-year earnings. Chrysler’s strong profits once again propped up its parent company, which otherwise would have lost money.
Shares of the combined company will trade jointly on the New York Stock Exchange and in Milan, Italy, by Oct. 1. The new company will maintain significant research, engineering and financial operations in Fiat’s hometown of Turin, Italy, and at Chrysler’s complex in Auburn Hills, Mich.
Boeing outlook sinks stock despite solid profit
Boeing is building airplanes faster, but Wall Street wants it to build profits faster, too.
Boeing Co. shares dropped more than 5 percent on Wednesday after it said this year’s profit and revenue would grow less than analysts had been expecting.
There are a number of reasons. Boeing’s defense business is slowing down as governments dial back spending. Some planes slated for delivery in early 2014 were instead delivered late last year — that helped boost Boeing’s fourth-quarter profit, but will take away from this year’s results. And deliveries of its new 787 are a mixed bag, financially. They bring in cash, but hurt profit margins as Boeing accounts for the money it spent developing the plane.
Boeing predicted 2014 revenue of $87.5 billion to $90.5 billion — at least $2 billion less than expected by analysts.
Austin hotel changes ownership
A 123-room Hampton Inn hotel in Austin has been purchased by Moody National REIT 1 Inc. The six-story hotel is at 4141 Governors Row, off Interstate 35 and Texas 71, 6 miles from Austin-Bergstrom International Airport.
The seller was a joint venture between a California family trust and a Texas-based private investor. Allan Miller, an associate vice president investments in Marcus & Millichap’s San Antonio office, Chris Gomes, a senior associate in Dallas, and Jake Gaddy, an associate in Austin, represented the seller. David Greenberg, a vice president investments in the firm’s Fort Lauderdale office, advised the buyer. Terms were not disclosed.
The hotel was built in 1997 and renovated in 2012.