Lenovo To Buy Motorola From Google For $2.91 Billion?

Lenovo, world’s largest PC manufacturer, will buy Google Inc’s Motorola Mobility handset unit for about $2.91 Billion, as per reports. This would give the Chinese company a bigger say in the global tablet and smartphone market. This will be the fourth largest US acquisition for a Chinese or Hong Kong based company ever. Larry Page, CEO, Google said via blog that he is phenomenally impressed with what Motorola has achieved and added further that it will continue to build more and more great products with Lenovo as a partner.

In 2011, Google acquired Motorola Mobility unit for $12.5 Billion. This was a money-loss subsidiary business for Google. According to Google’s financial reports, Motorola Mobility suffered $248 million operating loss in 2013. Earlier this week, Lenovo said it will buy IBM’s low-end server unit for $2.3Billion. Together with IBM agreement, Lenovo has agreed to fork as many as 800 million shares representing about 7.7 percent of its outstanding stock. With its acquisition of Motorola, Lenovo is emerging as the most viable contender to global smartphone leaders like Apple and Samsung.

Yang Yuanquing, chairman and CEO of Lenovo said that the company’s smartphones and tablets will be entering in US and western European markets by 2015. These markets are dominated by Apple and Samsung. Lenovo, the world’s largest PC maker is speeding its pace challenging Apple and Samsung in global consumer electronics sector. Lenovo will receive about 2000 patent assets as a part of its transaction. For Motorola, Lenovo would pay $660 million in cash, $750 million in shares and $1.5 billion in the form of 3 year promissory note, Lenovo and Google said in a joint statement. It is now interesting to see what impact China would make with this Motorola deal and launch of “#-Link-Snipped-#” earlier this month, it would like to see home-grown competitor to Android and iOS.

Source: #-Link-Snipped-#
Image credit: Economic Times


  • micheal john
    micheal john
    In 2011, Google acquired Motorola Mobility unit for $12.5 Billion. This was a money-loss subsidiary business for Google.
    reason for this loss😕
  • Netradeep Dhonde
    Netradeep Dhonde
    Project ARA(modular phone) will be remaining with Google's Android team though.
  • prahu mac
    prahu mac
    is lenovo that good to acquire motorola?? i don't think so!!!!!
  • Netradeep Dhonde
    Netradeep Dhonde
    Due to decreased sells in laptop division, i guess Lenovo will be now focusing on mobile phones.
    it will be interesting to see the products comprising of quality check of motorola(six sigma rated company) and marketing skills of lenovo.
  • Abhishek Rawal
    Abhishek Rawal
    Dhananjay Harkare
    This was a money-loss subsidiary business for Google.
    Google buying Motorola Mobility was all about patents, In 2011 when Google purchased it, Motorola had 17,000 approved patterns & 7,500 more in pipeline. Google knew it, Motorola too knew that Google needs it to build patent defense for future Android ecosystem. Also,Google already earned $2.35 billion in deal with Arris group for Motorola set top box. Google still owns majority section of Motorola patents. I don't see where the 'loss' term come in the picture.
    It's win-win, one will enter smartphone market easily while search engine giant will get hefty amount of dollar bills even after retaining the patents.
  • Dhananjay Harkare
    Dhananjay Harkare
    @#-Link-Snipped-# @#-Link-Snipped-# you may like to read Google's blog- #-Link-Snipped-#

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