Tell me you saw this one coming: Google and Lenovo have announced that Lenovo has acquired the Motorola Mobility subsidiary from Google for US$2.91 billion.
The Motorola Mobility aquisition includes the Motorola brand as well as its current portfolio of smartphones, including the Moto X and Moto G. Google will hang onto the majority of Motorola Mobility’s patents, including current patent applications and invention disclosures. Lenovo does pick up about 2,000 patent assets and will receive a license to the Motorola patents that Google has chosen to keep.
“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.”
The deal will also allow Google to go back to “driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”
The deal still needs to go through all the necessary regulatory requirements and other closing conditions before it is made official.
Google bought Motorola Mobility back in 2012 for US$12.5 billion. The move was largely seen as a patent grab at the time and today’s announcement appears to vindicate those soothsayers. It made back about US$2.35 billion back when it sold off the Motorola Home division in 2012. With another US$2.91 billion today, it effectively paid about US$7.24 billion for Motorola’s patent portfolio.
Motorola established itself as a company to watch under Google. Let’s hope that its new owners let it continue to move in the current direction!
Source : Google