Lenovo acquires Motorola Mobility from Google at $2.91 billion
Google which had acquired Motorola in 2012 for $12.5 billion, has now sold Motorola mobility to Lenovo at $2.91 billion. The deal was signed today according to which, Lenovo know owns the Motorola’s mobile manufacturing department..
Google’s primary reason for buying Motorola in 2012 was to acquire its patents. But according to Google, the company wasn’t able to extensively use the patents and had incurred major loss after it acquired Motorola. The deal signed by Lenovo and Motorola doesn’t include the patents which Motorola had acquired so Lenovo will be getting only the manufacturing department of Motorola. The patents, R&D labs, Project groups and Motorola’s technology will still be owned by Google.
Google CEO, Larry Page stated :
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.
According to the deal, Lenovo will pay $660 million in cash to Google and $750 million in stock. The remaining $1.5 billion will be paid in time period of three years. Recently Lenovo has also acquired IBM’s x86 server business. Stay connected for more updates.