The Story So Far- Google has on the record pronounced that Lenovo is certainly procuring Motorola Mobility from the search colossus at an assessed price standing tall at $2.91 billion.
The anecdote mill had scarcely even got time on the cards to access the story obtainable beforehand Google from its quarter issued a press release affirming that- Lenovo was undeniably obtaining Motorola Mobility. Buzzes abound that expected the price sandwiched between $2 to $3 billion, and the official amount came in, totaling at $2.91 billion, but will be subject to some adjustments. The deal comprises $1.41 billion to be paid at present – $660 million in cash, $750 million in shares of Lenovo, and the residual $1.5 billion to be remunerated in excess of the next three years.
Google bought Motorola Mobility in Aug. 2011 for $12.5 billion, so it goes by without saying that one would obviously wonder as to why Google would take such a large loss after such a diminutive period. In line with the release Google retains the proprietorship over the majority of the all-important patent portfolio. Lenovo from its barrio will take delivery of a license for all of the patents it did not obtain in the purchase, and will also now hold 2,000 other patents. It will also accept all of the Motorola brand possessions and trademarks.
“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,” reportedly 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,” reportedly quipped, Dennis Woodside, CEO, Motorola Mobility.
The contract is not yet wrapped up as it must be given the customary approvals, but then again neither company seems to have any uncertainties of it not being finalized.
Lenovo to procure Motorola Mobility from the House of Google
Research Triangle Park, North Carolina, and Mountain View, California: Lenovo and Google have crossed the threshold and entered into a definitive agreement under which Lenovo strategizes to obtain the Motorola Mobility smartphone business. By way of a strong PC business and a rapidly-growing smartphone industry, this agreement will significantly bolster Lenovo’s position in the smartphone market. In totaling, Lenovo will achieve a resilient market manifestation in places as North America and Latin America, as well as gain a foothold in Western Europe, to supplement its robust, fast-growing smartphone business across the spectrum of embryonic markets round the world.
The acquisition price is just about US$2.91 billion (subject to certain adjustments), plus US$1.41 billion paid at close, covered US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a share cap/floor). The outstanding US$1.5 billion will be paid in the form of a three-year promissory note.
Lenovo, which in 2005 obtained IBM’s PC business and its legendary PC brand, will now attain world-renowned Motorola Mobility, together with the MOTOROLA brand and Motorola Mobility’s portfolio of ground-breaking smartphones like the Moto X and Moto G and the DROID Ultra series. In accumulation to current products, Lenovo will take possession of the future Motorola Mobility product roadmap.
Google will uphold ownership of the immense majority of the Motorola Mobility patent portfolio, plus current patent applications and invention disclosures. As chunk of its enduring relationship with Google, Lenovo will be given a license to this rich portfolio of patents and other intellectual property. Furthermore, Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.
Motorola Mobility revels in the exceptional brand cognizance around the world, and is currently the #3 Android smartphone manufacturer in the U.S. and #3 manufacturer largely 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,” reportedly said Yang Yuanqing, chairman and CEO of Lenovo. Volumnising further that – “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,” quipped, 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,” held Dennis Woodside, CEO, Motorola Mobility.
The transaction is conditional on the satisfaction of regulatory requirements, routine closing conditions and any other required approvals.