Lenovo Officially Acquires Motorola Mobility For $2.91 Billion

Subject: Mobile | October 30, 2014 - 11:40 PM |
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.

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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. 

Source: Motorola

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October 31, 2014 | 01:11 AM - Posted by Anonymous (not verified)

chinese buying more american tech companies.

October 31, 2014 | 01:17 PM - Posted by Anonymous (not verified)

The Company is not important, or the companies' brand, its the IP, and the rights to use the IP in products. If Intel and AMD go down, who cares, someone will take the IP, and license it out to others, epically Intel's, Intel needs to be brought down, and made to license the x86 IP across the entire industry, like ARM holdings is doing, and IBM is doing, same goes for AMD, the holder of the x86/64 bit License(limited). The Brand only has meaning to those without any reasoning skills, and the marketing monkeys, who pull one over on anyone foolish enough the be a fan of any corporation. Who cares about Intel or IBM, Intel's and IBMs IP, and patent portfolios, are what really matters in the end. Intel needs to be turned upside-down and the licensing rights to its IP, needs to be made available to all for a fee, same for AMD, Nvidia.

Do you see any automobile manufacturer who makes an entire product in house, anymore, no, not for many decades. Suppliers of parts, for any finished product, need to be in competition with each other, using the exact same IP, and competing to deliver that IP in the form of low cost parts to the Device OEM's, what a terrible thing for the consumer, that a lowly supplier of CPU parts to IBM, has been allowed to corner the market for x86 parts, for so many years, and force its will upon the PC/Laptop OEMs for decades, to the determent of the consumer, hell OEMs cannot engineer decent laptop designs because Intel is calling the shots and taking all the profits, in the form of overpriced CPU/SOC parts.

P.S. a good part of America's brain power, Like Forever, has come in the form of immigrant scientists, and tech companies have been international since before most of your parents were born. American corporations are especially inefficient, what fool stockholders lets any corporate executive make more that 20 times what the lowest paid worker makes, Tim Cook, not worth it, Steve Ballmer, definitely not worth more than 200 thousand a year in salary(he made most of his money is stocks being at the right place at the right time). The stockholders of all the American companies need to fling of these prima donna CEOs, with their high salaries, overboard, if the CEO wants to become rich, make him/her have to be in at the ground floor/founding of the company, and using his small wages to invest in the companies' stock, no more multimillion dollar wages or stock options.

October 31, 2014 | 03:05 AM - Posted by praack

yeah makes me more concerned than happy since the party is more involved with any company in china than one would think. Anyone who does business with china and is a bit smarter than a toaster should have that level of understanding.

October 31, 2014 | 12:27 PM - Posted by Anonymous (not verified)

Long before Lenovo bought Motorola Mobility, all the components were made in China anyways, and the CPU/SOC was licensed from ARM holdings! See:

"Note that Google will retain the majority of Motorola's patent portfolio along with the Advanced Technology and Projects research division."

This should tell you that the technology IP is still in the hands of Google, but that the Chinese like everyone else are going to be licensing the IP. Hell Tyan is licensing Power8s form IBMs openpower foundation, and will be building low cost server SKUs, and complete systems.
Chances are very likely that whatever State Side name the company is registered at, it is make everything in China, and the rate China is graduating engineers, it will probably be engineered in China using licensed CPU/SOC technology from the various SOC/CPU design bureaus, like ARM holdings, and now IBM(Via the OpenPower foundation/Power8 IP Licensing).

So the Chinese are buying a brand, with its brand name recognition, and the rights to license the technology from Google, everything is going to go licensed IP, like ARM Holdings IP, including GPUs, IBM is out of the fabrication business, but you can be damned sure that IBM that its power8 architecture IP, and it is still held by IBM, and those Chinese made Power8s will be inexpensive for IBM, and anyone else that needs low cost server SKUs, IBM and others will be buying them at commodity pricing. IBM will still be in the CPU development business, and Google will probably contract with Lenovo, and others for Google branded chromebooks/tablets, Google Bought the patents/IP not the brand, Lenovo get the manufacturing, brand, and the right to license the technology. So Google, and now IBM are fabless, Google has always be fabless, the Fab companies only fabricate the designs for others, they will be fabricating both Google's licensed power8's and IBM's power8, and Google will save billions in CPU/server SKU costs, and IBM will save billions not having to upkeep expensive fab facilities.

You can buy a brand, and not have the IP, and the IP is what matters, not some brand name, it's all made in China, no matter the nationality of the brand, and most likely the Chinese companies are doing some of the work in Vietnam. the labor rates are cheaper than in China.

Nixon went to China, Armand Hammer went to Russia, looking for low wages, and what does capitalism have to do with democracy. Capitalism/Communism do not equal democracy, you should be more worried about the merchant princes, and the new TRUSTs that rule in America, via both political parties, serving the Comcasts, the M$s, the Intels, Googles, and such the new monopolies, and no Teddy Roosevelt to bust them up.

October 31, 2014 | 10:19 AM - Posted by Anonymous (not verified)

China is experiencing a combination of America's industrial revolution, Space Race, and its Silicon Valley boom all at once. Looking back at the incredible feats of engineering that America accomplished during those eras, I can't help but be envious entrepreneurs in China as they have all but crushed the presence of communism while also made a sh*t ton of money and bringing down the costs of so many goods and services. This whole post-Mao, post-Deng China thing is really cool to watch.

Next stop, multi-party politics.

October 31, 2014 | 11:20 AM - Posted by DJF (not verified)

"""Next stop, multi-party politics."""

They have been saying that since Nixon went to China.

In fact nothing gets done in China without the Communist Party signing off on it.

October 31, 2014 | 01:52 PM - Posted by Anonymous (not verified)

No the Communist party is in it for the Yuan, Dollar, whatever, just like the Democrats, and Republicans, and oh how the Capitalists envy the non democratic ability of any Chinese government, to get around the environmental regulations, and the Unions, Yes the Capitalists have no more love for freedom and democracy, than the Communists, in fact both economic philosophies rely on hordes of the poorly educated, to get them in power, by the ballot box, or the sword. You have to be very cautious of both the Capitalists, and the Communists, and unchecked Capitalism is the mother of Communism!

Democracy is Democracy, accept no lies, that Capitalism, or Communism, have the slightest thing to do with Democracy.

October 31, 2014 | 03:22 PM - Posted by Lance Ripplinger (not verified)

I think Lenovo makes some fine products (I love my Thinkpad), so if they can take the Motorola brand, and make some great, stock Android phones, and sell them in the States here, that is great! I always liked Motorola phones because of the stock Android experience. I currently have a Milestone X that is still working just fine.

November 1, 2014 | 10:52 PM - Posted by praack

The party is in it for the party, and part of the party's ideal is the destruction of the USA. if all they did was make chips and put together boards there would be no problems. but with the advent of unit 61398 and other persistent threats it should be more than apparent what the chinese are up to.

November 2, 2014 | 11:27 AM - Posted by Anonymous (not verified)

If anything is going to lead to The USA's demise, it is the Liberal PCer, and the conservative PCer, and the American Slackjaws that buy their political message, that and Joe Six-pack's threat to everything from Democratic Trade Unions, to good old Joe six-pack's Tea Party rantings, the Left and the right in this country love the slackjaw, and how easy this misinformed demographic falls for it hook, line, and sinker. The Chinese being mostly populated by their version of Joe Six-Pack are merely a non democratic country ruled by their merchant princes, who through the so called Communist Party will only allow their human cows to have enough freedom to consume, as that is what the merchant princes most desire. The Capitalists and the Communists, and whatever political/economic system, need the slackjaws they have fooled into thinking they have a foolproof system, and have one true tool to remain in power, and that tool is the slackjaw! We are all really in threat, worldwide, by the slackjaws, and the Joe six-packs, who so easily fall for the religious extremism, rampant consumerism, and greedy politicians. The middlemen of America love the Chinese, and could care less about the democratic ideals, they only want just the right amount of freedom to keep the consumption going and the profits flowing. Spying is big business, whether it is military, or government, or civilian, secrets can be sold, including buying habits, and personal metrics, and you can be damn sure the Chinese will spy on anyone, or anything if the price is right, the Chinese version of the military industrial complex needs technology to fuel its profits. Everybody spies, M$, Apple, Tyan, Uncle Sam, the French, the Israelis, Chinese, and if you are a slackjaw you are the grist for the mill, be it the Madrasas, the Democrats, the Republicans, and any others that rely on the slackjaw for its powerbase. It's hard living in a democracy, and even harder living in a totalitarian market economy state, like China, and others, mostly dew to the ravenous rabid slackjaws, and Joe Six-packs shoving their left and right wing views on everyone, Fight the stupids, and the cultural, and political, whatever, manipulations that they fall under, Joe Six-pack killed the unions in this country, faster than the pinkertons, the national guard, or any others could, be uber careful around any uneducated tools. The wealthy and powerful utilize the uneducated tools to keep everybody oppressed in a democracy, in a much more insidious way than even the brightest dictator could in the worst of dictatorships.

Note: PCer means politically correct, and PC has been around a lot longer than the term PC.

P.S. The slackjaw also includes the hipster, the sports nut, and some gamers. Do not ever associate gaming with nerds, as any person who is educated to any degree is just as in danger in the USA, as in China, or anywhere else, and always avoid religion and politics, as both are there to oppress all, via the manipulation of the slackjaws. Avoid the slackjaw, as if they are infected with Ebola, carefully move away from the slackjaws without alarming them, but always strive to keep your distance, and avoid all slackjaw events, and meeting places, learn how to feign interest, so as to not offend the slackjaw's fragile ego, and worldview, but get yourself a far away as possible.

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