Google completes deal to sell Motorola to Lenovo for £1.82bn

Web giant thinks Motorola will thrive under Lenovo

Motorola

Lenovo has completed the acquisition of Motorola Mobility from Google for 1.82 billion.

The buy-out process was announced at the beginning of the yearandMotorola is now set to operate as a wholly-owned subsidiary of the computing firm, reports Mobile News Magazine.

Motorola headquarters will remain in Chicago, with almost 3,500 employees from around the world staying on as designers, engineers, sales and support for the manufacturer. Lenovo also gets the Motorola Mobility trademark portfolio and branding.

Advertisement - Article continues below

The acquisition, the site reports, is likely to push Lenovo (market share of 5.2 per cent) ahead of fellow Chinese company Xiaomi (market share of 5.3 per cent) to become the third largest smartphone seller behind Samsung and Apple.

Yang Tuanqing, Lenovo chairman and CEO, said: "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.

Liu Jun, executive vice president for Lenovo and chairman of the Motorola Management Board, added: "Motorola has already built solid momentum in the market, and their recent results show consumers are excited about their exceptional products that stand out for their design and simplicity."

Advertisement
Advertisement - Article continues below

When the web giant announced it was going to acquire Motorola Mobility for $12bn in 2011, eyebrows were raised. Motorola had been struggling, racketing up losses of $4.3 billion between 2007 to 2009, and it spun off the handset business.

Advertisement - Article continues below

Most analysts suggested the reason behind Google's acquisition of Motorola was for the vast patent portfolio. Based on Google's explanation for the sale to Lenovo, it's clear the patents were the primary target.

"[On] the intellectual property side, Motorola's patents have helped create a level playing field, which is good news for all Android's users and partners...Google will retain the vast majority of Motorola's patents, which we will continue to use to defend the entire Android ecosystem," explained Google CEO Larry Page in a blog post at the time.

"Lenovo has the expertise and track record to scale Motorola into a major player within the Android ecosystem. They have a lot of experience in hardware, and they have global reach."

This was the second high-profile acquisition Lenovo has made in the same week as it continued to push forward in the hardware market. The Chinese firm also announced it was splashing out $2.3 billion on IBM's x86 business.

Advertisement - Article continues below

Lenovo has a solid track record when it comes to building market share through acquisitions. The firm purchased IBM's ThinkPad range of laptops in 2005, and has used the brand to catapult itself to the top of the PC market.

With Motorola making some of its best handsets in years in the form of the Moto X and Moto G, it wouldn't be a surprise to see the brand return to a dominant position under the stewardship of Lenovo.

This article was originally published on 30/01/14 and has been updated several times (most recently on 30/10/14) to reflect new information available.

Featured Resources

The case for a marketing content hub

Transform your digital marketing to deliver customer expectations

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

IT faces new security challenges in the wake of COVID-19

Beat the crisis by learning how to secure your network

Download now
Advertisement
Advertisement

Recommended

Visit/mobile/google-android/355837/arizona-files-lawsuit-against-google-for-illegally-tracking-android
Google Android

Arizona files lawsuit against Google for illegally tracking Android users’ locations

29 May 2020
Visit/network-internet/email-providers/355822/gmail-introduces-new-features-to-makes-personalizing-your
email providers

Gmail introduces new features to makes personalizing your inbox easier

28 May 2020
Visit/mobile/google-android/355804/google-confirms-users-can-make-purchases-via-voice-match-feature
Google Android

Google Assistant can now verify payments using your voice

27 May 2020
Visit/mobile/google-android/355770/google-maps-celebrates-global-accessibility-awareness-day-with
Google Android

Google Maps celebrates Global Accessibility Awareness Day with Accessible Places

22 May 2020

Most Popular

Visit/operating-systems/microsoft-windows/355812/microsoft-warns-against-installing-windows-10-may-2020
Microsoft Windows

Microsoft warns users not to install Windows 10's May update

28 May 2020
Visit/security/cyber-security/355797/microsoft-bans-trend-micros-rootkit-buster-from-windows-10
cyber security

Microsoft bans Trend Micro driver from Windows 10 for "cheating" hardware tests

27 May 2020
Visit/policy-legislation/data-protection/355835/nhs-yet-to-understand-the-risks-of-holding-test-and-trace
data protection

NHS yet to understand risks of holding Test and Trace data for 20 years

29 May 2020