Even though they already controlled a significant share of the smartphone market, Lenovo has acquired Motorola Mobility from Google for almost $ 3 billion.
This is what I call surprising news. After Google spent note less than $ 12.5 billion to acquire Motorola Mobility in 2011, the Mountain View-based giant is now selling the same company for $ 2.91 billion. Even though in reality the product that is now sold by Google to Lenovo doesn’t have to many in common with what the search engine giant acquired two and a half years ago, one thing is sure: the China-based company has just purchased its way to the US smartphone market.
Motorola Mobility has one of the biggest patent portfolio in the smartphone industry. They even have a couple of independent divisions that created some futuristic projects. In the same time, the Chicago-based phone maker launched in 2013 a few devices that created a lot of hype. Moreover, the smartphones were made in the US, unlike more than 90% of the products in the same category. Now it remains to be seen how independent Motorola will be after the folks at Lenovo compete the takeover.
After it was just a rumor initially, the Motorola acquisition was confirmed by both Google and Lenovo, the two companies adding that the deal was sealed for $ 2.91 billion which will be mostly payed in cash. The deal also includes Lenovo shares worth of $ 750 million.
What’s even more interesting is that most of Motorola’s patents are not involved in the deal. It’s true, Lenovo will enter in the possession of Motorola brand (and all Motorola trade marks), but the important patents will be owned by Google and they will be subsequently licensed as a consequence of a partnership.
Google officials also mentioned that the Motorola deal will not influence the hardware projects the Mountain View-based giant is currently developing. Furtheremore, Advanced Technology and Projects group of the company, will still be owned by Google which will continue to develop Project Ara.