Google announced Monday that it had sold its smartphone unit to Chinese mobile-phone maker Xiaomi.
The deal is worth $10 billion, making the Google unit the largest in the world, surpassing Apple and Amazon’s combined market value.
Google said in a statement that the sale, announced by chairman Eric Schmidt, would help make Google’s mobile-software division a global leader.
“This acquisition will give Google an additional $10B in revenues and create an even bigger global presence,” Schmidt said in the statement.
Google, founded in 1998, has grown into one of the world’s most important mobile-services companies and the leader in mobile computing, services and products.
In its announcement, Google also announced a deal with Chinese internet giant Tencent for $10bn.
“We have a long history of working with Chinese companies, and this transaction is an exciting opportunity to deepen our partnerships with leading Chinese companies,” Schmidt wrote in the company’s statement.
The Chinese tech giant’s chief executive, Terry Gou, told Reuters that the two companies had agreed to “greater collaboration” on the Android smartphone.
“Our focus is on delivering innovative and high-quality products to consumers around the world,” Gou said in an emailed statement.
Xiaomi is owned by Chinese billionaire Lei Jun, a billionaire who has made his fortune in technology and electronics.
The company was founded in 2006 by a group of investors including Google founder Larry Page, whose son Eric is now chairman of Google.
Xiaomi’s chief operating officer, Zheng Jiawei, told the Associated Press that he expects Xiaomi’s mobile services to grow at a “superfast” rate.
Xiaomi announced in May that it planned to build out its mobile-communications business by selling its phone business to Google, but the deal was delayed because of a legal dispute with Apple.