Google announced that it has reached an agreement to sell Motorola Mobility to Lenovo. The Chinese electronics giant will pay approximately $2.91 billion for the smartphone business with $1.41 billion due at the deal's closing in cash and ordinary shares, and the remaining $1.5 billion as a three-year promissory note.
As part of the deal, Google will retain the bulk of Motorola's massive patent portfolio, including current applications and invention disclosures. Lenovo will acquire about 2,000 patent alongside the Motorola Mobility brand and it's trademarks. The Chinese company will receive a license for the remainder of Motorola's portfolio which will remain at Mountain View.
After acquiring Motorola for $12.5 billion in 2012, Google raised the company's profile last year with the launch of the characterful Moto X and the Moto G duo of smartphones. Despite it's efforts however, Motorola Mobility continued losing money each quarter.
Motorola's acquisition will give Lenovo a much needed presence on the lucrative smartphone market in the United States (Motorola is currently number 3 smartphone manufacturer in the United States). It will also help the company counter the slumping sales of personal computers by expanding it's focus on mobile devices.
Furthermore, the deal marks the acquisition of another legendary American technology brand by Lenovo back in 2005, The company bought the venerable ThinkPad division from IBM
The transaction between the two companies is subject to regulatory approvals in both the United States and China.
Moto X review- http://shekhar087tech.blogspot.in/2013/12/motorolamoto-x.html
Moto G review- http://shekhar087tech.blogspot.in/2013/12/motorolamoto-g-review-lowest-end-high.html
As part of the deal, Google will retain the bulk of Motorola's massive patent portfolio, including current applications and invention disclosures. Lenovo will acquire about 2,000 patent alongside the Motorola Mobility brand and it's trademarks. The Chinese company will receive a license for the remainder of Motorola's portfolio which will remain at Mountain View.
After acquiring Motorola for $12.5 billion in 2012, Google raised the company's profile last year with the launch of the characterful Moto X and the Moto G duo of smartphones. Despite it's efforts however, Motorola Mobility continued losing money each quarter.
Motorola's acquisition will give Lenovo a much needed presence on the lucrative smartphone market in the United States (Motorola is currently number 3 smartphone manufacturer in the United States). It will also help the company counter the slumping sales of personal computers by expanding it's focus on mobile devices.
Furthermore, the deal marks the acquisition of another legendary American technology brand by Lenovo back in 2005, The company bought the venerable ThinkPad division from IBM
The transaction between the two companies is subject to regulatory approvals in both the United States and China.
Moto X review- http://shekhar087tech.blogspot.in/2013/12/motorolamoto-x.html
Moto G review- http://shekhar087tech.blogspot.in/2013/12/motorolamoto-g-review-lowest-end-high.html
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