Google selling Motorola Mobility to Lenovo for $US2.91 billion

The acquisition is the largest acquisition in Lenovo's history and will include a mixture of cash and stock.

Lenovo is set to buy Motorola Mobility from Google for $2.91 billion in a deal that excludes the vast majority of Motorola’s patent portfolio.

The acquisition comes just a day after an organisational restructure and a week after the company paid $2.3 billion for IBM’s server business.

The move has been tipped as a bid to expand Lenovo's presence in the US.

The acquisition is the largest acquisition in the company’s history and will include a mixture of cash and stock.

Lenovo will pay Google $660 million in cash, $750 million in stock, with the remaining $1.5 billion paid out over the next three years.

Google, which paid $12.5 billion for Motorola Mobility in 2012, will maintain ownership of the vast majority of its patent portfolio, including current patent applications and invention disclosures.

According to a joint company statement, Lenovo will receive a license to this portfolio of patents and other intellectual property.

Additionally, Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.

Google chief executive, Larry Page, said Lenovo had 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.”

Lenovo chief executive Yang Yuanqing said the acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team would 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,” he said.

“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.

Motorola Mobility chief executive Dennis Woodside said his company would have a rapid path to achieving its goal of reaching the next 100 million people with the 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,” he said.

The news comes a day before Google reports its quarterly earnings.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Lenovo chief executive Yang YuanqingLarry PageGoogle chief executiveMotorola Mobility chief executive Dennis Woodside

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?