Lenovo has announced the acquisition of Motorola Mobility from google. This agreement will see lenovo pay Google $2.91 billion, including $660 million in cash and $750 million in newly issued Lenovo stock. The remaining $1.5 billion will be paid to Google in the form of a three-year promissory note.
Starting today , Motorolla will operate as a subsidiary of lenovo company. Lenovo will take over Motorola’s brand and smartphone portfolio, around 3,500 employees (most of them in the US), as well as some of Motorola’s patents and patent licenses. Google, however, will keep “a majority” of Motorola’s patent portfolio. Rich Osterloh will also continue to lead Motorola as President and CEO, and the company will keep its Chicago headquarters.
Speaking on this acquisition , The CEO and Chairman of Lenovo , Yang Yuanqing has this to say ;
“Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market. By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation”
The CEO of google , Larry page , also added that ;
“Motorola is in great hands with Lenovo, a company that’s all-in on making great devices,”
We can recall that Google paid a staggering $12.5 billion for Motorola back in 2011.