Lenovo and Google announced today that Lenovo’s acquisition of Motorola Mobility from Google is complete for a deal amount of USD 2.91 billion. Initially, Google bought Motorola Mobility for USD 12.5 billion in 2012. However, Google will continue with Project Ara modular smartphone project, which was launched by Motorola last year before the latter got acquired by Google. On Wednesday, Phonebloks released a video that showed first prototype from Google Project Ara, a free, open hardware platform for creating highly modular smartphones.
Lenovo will operate Motorola as a wholly-owned subsidiary. Motorola’s headquarters will remain in Chicago. With the completion of the acquisition, Lenovo welcomes the addition of a new portfolio company with nearly 3,500 employees around the world – including about 2,800 in the U.S. – who design, engineer, sell and support Motorola’s outstanding devices.
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Liu Jun, EVP, Lenovo, President Mobile Business Group, Lenovo and Chairman of the Motorola Management Board; Yang Yuanqing, Lenovo Chairman and CEO; and Rick Osterloh, President and COO
“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,” said Yang Yuanqing, chairman and CEO, Lenovo.
“Motorola is in great hands with Lenovo, a company that’s all-in on making great devices,” said Larry Page, CEO, Google.
Beyond smartphones, the Moto 360 watch has captured consumer attention and established Motorola as a company expanding into emerging mobile device areas. As previously stated, Lenovo expects to make the Motorola business profitable in four to six quarters.
Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to this portfolio of patents and other intellectual property. Motorola will retain over 2,000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.
Motorola also confirmed the acquisition on its website:
Today, Motorola Mobility becomes part of the Lenovo family of companies, and we are thrilled. The iconic Motorola brand will continue, as will the Moto and DROID franchises that have propelled our growth over the past year.
We will continue to focus on pure Android and fast upgrades, and remain committed to developing technology to solve real consumer problems. And we will continue to develop mobile devices that bring people unprecedented choice, value and quality.