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Lenovo acquires Motorola Mobility from Google for $2.91 billion

Written by Andre Yoskowitz (Google+) @ 29 Jan 2014 20:22 User comments (8)

Lenovo acquires Motorola Mobility from Google for $2.91 billion In easily the biggest tech news of the day, Lenovo has agreed to acquire the Motorola Mobility smartphone business purchased by Google in 2011.
Lenovo finally gets their entry into the North American market (as well as a better foothold in Western Europe), and Google gets to dump a division that has been hemorrhaging money for years. Google purchased Motorola Mobility for its patents over two years ago for over $12 billion.

Google will receive $1.41 billion upfront (cash and shares) and the rest to be paid over the course of three years. Google will keep most of the patents but Lenovo will still receive 2000 patent assets, the Moto Mobility brand, and all of its trademarks. Lenovo will license the rest of the patents and IP.

"The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space," said Yang Yuanqing, chairman and CEO of Lenovo. "We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business. Lenovo has a proven track record of successfully embracing and strengthening great brands as we did with IBM's Think brand and smoothly and efficiently integrating companies around-the-world. I am confident we will be successful with this process, and that our companies will not only maintain our current momentum in the market, but also build a strong foundation for the future."

"Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere," added Google CEO Larry Page.

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8 user comments

130.1.2014 2:27

Why does Lenovo need the Motorola brand?




Its a lot easier being righteous than right.


231.1.2014 10:29

$9 billion loss on original purchase. Sounds like Google's got the right business model going here.

331.1.2014 19:17

Originally posted by dbtinc:
$9 billion loss on original purchase. Sounds like Googles got the right business model going here.
Read the article, Google didnt buy moto for the hardware business.

431.1.2014 19:46

Guess it's a good deal but is it a smart deal??????

"Google gets to dump a division that has been hemorrhaging money for years".

This message has been edited since its posting. Latest edit was made on 31 Jan 2014 @ 19:48

531.1.2014 23:03

Originally posted by dbtinc:
$9 billion loss on original purchase. Sounds like Google's got the right business model going here.
Actually Google are only selling part of it... "...Google will keep most of the patents..."

Its a lot easier being righteous than right.


62.2.2014 9:04

Originally posted by sundance:
Guess it's a good deal but is it a smart deal??????

"Google gets to dump a division that has been hemorrhaging money for years".


Lenovo wants into the US phone/tablet marketplace. They know from experience in the PC/Laptop sector that establishing a brand in the US is far from easy. The only question is if it is easier to bring back a failed brand or create a whole new brand from scratch...well, that and if US consumers prefer a brand that they can spell phonetically.

Actually, there is another question that is almost certainly already answered in the negative: can a company comprised mostly of people from a country with an education system designed to make mindless authority-following zombies innovate?


72.2.2014 10:02

Originally posted by KillerBug:
Originally posted by sundance:
Guess it's a good deal but is it a smart deal??????

"Google gets to dump a division that has been hemorrhaging money for years".


Lenovo wants into the US phone/tablet marketplace. They know from experience in the PC/Laptop sector that establishing a brand in the US is far from easy. The only question is if it is easier to bring back a failed brand or create a whole new brand from scratch...well, that and if US consumers prefer a brand that they can spell phonetically.

Actually, there is another question that is almost certainly already answered in the negative: can a company comprised mostly of people from a country with an education system designed to make mindless authority-following zombies innovate?
Answer=NO

Nobody in any 1st world country can name 3 big Chinese companies because all they do is either copy or produce products under other names. To get around this, Lenovo bought "Thinkpad", an established (and once respected) laptop brand, and now they are buying Moto, a (once respected) headset manufacturing company.

It will be interesting to see if they move US manufacturing to Asia since future Moto hardware will all be from Lanovo headquarters and already stamped out in Chinese plants.
This message has been edited since its posting. Latest edit was made on 02 Feb 2014 @ 18:05

82.2.2014 15:28

yeller, thinkpad is just not laptops but the entire ibm pc section minus servers & mainframes.

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