Lenovo completes Motorola Mobility acquisition
30 October 2014 | 0
Lenovo has completed acquisition of Motorola Mobility from Google for $2.91 billion in cash and stock. Google will retain a 6% share in the company.
Lenovo will operate Motorola as a wholly-owned subsidiary, with its headquarters staying in Chicago. According to a statement released today, Motorola’s 3,500 employees will be unaffected by the move. Google will maintain ownership of a majority of Motorola Mobility’s patent portfolio. Motorola will receive a license to use patentented technology and other intellectual property. Motorola will retain over 2,000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.
“Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market. By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation,” said Yang Yuanqing, chairman and CEO, Lenovo.
Motorola mobility was bought by Google in 2011 for $12.5 billion despite persistent losses. At the time Google was concerned about patent litigation relating to its Android operating system.