Top Ten facts about Lenovo’s Motorola Mobility acquisition
You would have probably heard by now that Lenovo has agreed to acquire Motorola Mobility from Google. Here are a look at top ten facts related to this acquisition, which is expected to be competed in the coming months.
- Lenovo will pay Google a total of $2.91 billion – $660 million in cash and US$750 million in Lenovo ordinary shares at the time of closing + $1.5 billion in the form of a three-year promissory note.
- It is the biggest-over overseas acquisition by a Chinese company in technology sector.
- According to IDC data, Lenovo was the fourth largest smartphone maker in Q4, 2013 and was the fastest growing smartphone vendor among the top five in the year 2013. Motorola acquisition will be a big help to the company in entering new key markets like US and Europe.
“We want to become a global player in the smartphone area. We still haven’t entered into the U.S. market and mature markets (in smartphones). The Motorola deal will definitely give us a shortcut into the U.S. market and provide us with a world-wide footprint. This will be a good start to challenge the big players in the smartphone market,” Lenovo CEO Yang Yuanqing revealed in an interview with WSJ.
- Google is keeping over 15,000 Motorola Mobility patents, while around 2,000 will be going to Lenovo. Lenovo will also get a license for the Motorola patents that Google is holding.
- According to Lenovo CEO, it will be using Motorola brand in US, Latin American and is even thinking about using it in China.
- Google is also holding onto the Advanced Technology and Projects group from Motorola Mobility, which was involved in Project Ara and other interesting ideas like tattoo security sensors and vitamin authentication pills.
- Among other acquisitions from US, Lenovo had bought IBM’s PC Business in 2005 and announced to acquire IBM’s low-end server unit for $2.3 billion earlier this month.
- To remind you, Google originally closed Motorola Mobility acquisition in 2012 for $12.5 billion. After the deal, Google sold Motorola’s set-top box business to Arris Group Inc. for $2.24 billion.
- Lenovo hopes to sell 100 million smartphones in the year after closing the Motorola deal.
- Motorola Mobility’s current portfolio of smartphones include the Moto X and Moto G and the DROID Ultra series.