Lenovo

Lenovo to Acquire Motorola Mobility from Google for $2.91 billion

Last updated:

Lenovo (HKSE: 992) (ADR: LNVGY) and Google (NASDAQ: GOOG) today have entered into a definitive agreement under which Lenovo plans to acquire the Motorola Mobility smartphone business. With a strong PC business and a fast-growing smartphone business, this agreement will significantly strengthen Lenovo’s position in the smartphone market. In addition, Lenovo will gain a strong market presence in North America and Latin America, as well as a foothold in Western Europe, to complement its strong, fast-growing smartphone business in emerging markets around the world.

The purchase price is approximately US$2.91 billion (subject to certain adjustments), including US$1.41 billion paid at close, comprised of US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a share cap/floor). The remaining US$1.5 billion will be paid in the form of a three-year promissory note.

Lenovo, which in 2005 acquired IBM’s PC business and its legendary PC brand, will now acquire world-renowned Motorola Mobility, including the MOTOROLA brand and Motorola Mobility’s portfolio of innovative smartphones like the Moto X and Moto G and the DROID™ Ultra series. In addition to current products, Lenovo will take ownership of the future Motorola Mobility product roadmap.

Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.

Motorola Mobility enjoys outstanding brand awareness around the world, and is currently the #3 Android smartphone manufacturer in the U.S. and #3 manufacturer overall in Latin America.

“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,” said Larry Page, CEO, Google.

“As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this,” said Dennis Woodside, CEO, Motorola Mobility.

The transaction is subject to the satisfaction of regulatory requirements, customary closing conditions and any other needed approvals.[signoff predefined=”Enjoy this?” icon=”icon-users”][/signoff]

We and our partners store or access information on devices, such as cookies and process personal data, such as unique identifiers and standard information sent by a device for the purposes described below. You may click to consent to our and our partners’ processing for such purposes. Alternatively, you may click to refuse to consent, or access more detailed information and change your preferences before consenting.

Your preferences will apply to this website only. Please note that some processing of your personal data may not require your consent, but you have a right to object to such processing. You can change your preferences at any time by returning to this site or visit our privacy policy.

Privacy Settings saved!
Privacy Settings

We and our partners store or access information on devices, such as cookies and process personal data, such as unique identifiers and standard information sent by a device for the purposes described below. You may click to consent to our and our partners’ processing for such purposes. Alternatively, you may click to refuse to consent, or access more detailed information and change your preferences before consenting. Your preferences will apply to this website only. Please note that some processing of your personal data may not require your consent, but you have a right to object to such processing. You can change your preferences at any time by returning to this site or visit our privacy policy.

When you use our Services, Rapid Mobile and our partners may use cookies and similar technologies (“cookies”) to store or retrieve information, including information about you, your use of our Services or your device. It is used to make our Services work as you expect them to, to enable analysis of your use and, because our Services are supported by advertising, to enable the delivery of ads that are more relevant to you. The information does not directly identify you. Because we respect your right to privacy, you can choose not to allow some types of cookies and processing. Click on the different category headings to find out more and change our default settings. Not allowing some types of cookies may impact your experience of our Services and what we are able to offer.

We track anonymized user information to improve our website.
  • _ga
  • _gid
  • _gat

Used by Spamshield to stop spam signups.
  • _wpss_h_
  • _wpss_p_

For shopping cart and order processing two cookies will be stored. These cookies are strictly necessary and can not be turned off.
  • woocommerce_cart_hash
  • woocommerce_items_in_cart

In order to use this website we use the following technically required cookies
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Confirm my Choices