Lenovo is in the final stages of talks to buy the Google division that makes the Moto X and Moto G smartphones, as well as certain patents, the sources said. A sale of Motorola would mark the end of Google's short-lived foray into making mobile devices and a pullback from its largest-ever acquisition. Google bought the U.S. cellphone giant in 2012 for $12.5 billion but has struggled to revamp the money-losing business.
Lenovo will reportedly use a combination of cash and stock as well as deferred payments to finance the deal with Google.
Notably, this would be the second major deal the company announces this month. Last week it announced a deal to buy IBM's low-end server business for $2.3 billion.
Lenovo is being advised by Credit Suisse Group while Lazard Ltd is advising Google on the transaction. The purchase price for Motorola is estimated at $2 to $3 billion, far less than the $12.5 billion Google paid for the company.