Google sells motorola to lenovo company for $2.19billion

It’s official: Motorola is now a
Lenovo company. The purchase
is worth $2.91 billion, and
includes $1.41 billion to be paid
at closing. The rest will be in the
form of a three year promissory
note.
Of the $1.41 billion to be paid at
the time of closing, $660 million
will be cash, with the remaining
portion ($750 million) being
Lenovo common shares. This
comes on the heels of Lenovo
purchasing IBM’s server business
a few days ago. For Google-
Motorola fans, this closes the
chapter indefinitely. The
transaction is still subject to
regulatory clearances, closing
conditions, and any other
approvals needed.
Since being acquired by Google
for $12.5 billion, Motorola has
seen a rapid uptick in both
attention and activity. Their
recent lineup, including the Moto
X and Moto G, are among the
better Android devices around.
Yang Yuanqing, Chairman and
CEO of Lenovo, had the following
to offer about the transaction:
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.
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.
In the interest of rounding out
the commentary, Google CEO
Larry Page said “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”. Dennis Woodside,
CEO of Motorola, noted that for
his company, this changes
nothing. They’ll still be focussed
on innovation and reaching “the
next 100 million”. Google will,
however, retain Motorola's
patent portfolio, though they'll
license it to Lenovo as part of the
deal.
Source: Google