Lenovo Officially Acquires Motorola Mobility For $2.91 Billion
Subject: Mobile | October 30, 2014 - 11:40 PM | Tim Verry
Tagged: motorola, Lenovo, finance, Android
Lenovo officially acquired Motorola Mobility from Google in a deal worth $2.91 billion (both cash and stock) today. Following the acquisition, Motorola will exist as a wholly owned subsidiary of Lenovo. Motorola will retain its headquarters in Chicago's Merchandise Mart along with satellite offices (including Silicon Valley) and approximately 3,500 employees. Note that Google will retain the majority of Motorola's patent portfolio along with the Advanced Technology and Projects research division.
Lenovo now owns the Motorola brand as well as the Moto and DROID trademarks. Lenovo expects to sell 100 million smartphones within the first year following the acquisition. These smartphones will allegedly continue to feature a stock Android experience with a focus of quick OS updates. Specifically, this Motorola blog post states:
"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." -
Lenovo has indicated that it plans to aggressively pursue selling Motorola devices in China, emerging markets, and even stateside. That last bit is perhaps the most interesting aspect of the buyout. Lenovo has been producing smartphones for a couple of years now, and while the mobile devices have held promise, they have yet to be made available in the US market. Now that Lenovo owns Motorola, the company has the branding power, experience, and carrier relationships to bring their devices stateside in a big way.
Google was not necessarily bad for Motorola but the potential conflicts of interest with other Android phone manufactures, I think, resulted in Google being much more reserved with Motorola when it came to producing new Android hardware. Now that Lenovo holds the future of Motorola, I think the company will be free to compete with new hardware running any manner of OS but especially Android. I'm interested to see where Motorola will go from here and the kinds of devices we'll see from the now Lenovo-owned company.