Here’s a breaking
news guys, Lenovo will buy Motorola mobility from Google. Google yesterday
confirmed this news that Lenovo will offer $2.91 billion to take Motorola. That
said Google acquired Motorola back in 2012 with $12.5 billion. So, the selling
price is seems to be surprisingly very low compared to the amount Google spend.
But as we all know Google is one of the smartest companies in the business and
it is not expected to see Google making any bad move.
Google is keeping
the patent portfolios acquired from Motorola. And over 17,000 patents are in
hand of Google and they will not give away the patents to Lenovo rather Lenovo
have to license to use the patents though
Lenovo will get over 2000 patents and brand and trademark portfolio of Motorola
mobility. Lenovo won’t pay the money at
once rather in 3 parts as: $650 million in cash, shares of Lenovo worth $750
million and the remaining $1.5 billion will be paid in a course of three years.
That will help Lenovo to strengthen their hold in Smartphone market as well as
western market.
The motive of Lenovo seems to be the ability
to export their Smartphones in U.S. and markets where Motorola is active. Lenovo
is the fifth largest shipment makers with 45 million shipments in the last
quarter and this acquisition of Motorola is certainly going to help Lenovo to
spread their shipments and brand awareness. The transaction is now just a
matter of time.
Dennis
Woodside, CEO, Motorola Mobility said,
“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.”
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