The Chinese giant, Lenovo has acquired Motorola Mobility from Google. It has paid a price of $2.91 billion for the startup which Google wasn’t profiting from. It is hoped Lenovo will put it to better use.
The Chinese have conquered yet again. Lenovo has signed a contract with Google in accordance with which it will get specific ownership rights to Motorola Mobility. This will further beef up Lenovo’s place in the market. Via this arrangement, Lenovo will make a mark in both North and South America as well as in Western Europe.
“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.”
Meanwhile, the smartphone business that Motorola represents is a valued asset that Lenovo will build into a virtual institution. The payment procedure for the merger was quite complex. It included clauses on shares and a promissory note that will last three years. About a decade ago, Lenovo engulfed IBM’s PC enterprise. Now with this new company under its belt, it is definitely on the rocky road to success.
As an Android brand, Motorola has come up with the Moto X as well as the Moto G. Google keep the patent portfolio of Motorola to itself. However, Lenovo will be allowed to avail this rich source of inventive innovation. The takeover is slated to be of mutual benefit to both Lenovo and Motorola.
“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,” said Larry Page, CEO, Google.
And Google will be overseeing all this with eagle eyes. It too wants to whet its beak if there are any profits accruing from this venture. For once, Lenovo is ready to spread in a region that used to be the sole home turf of Apple.
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“As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this,” said Dennis Woodside, CEO, Motorola Mobility.