Lenovo Acquires Motorola Mobility From Google For $2.91 Billion

Google and Lenovo have reached an agreement to purchase Motorola, trademark portfolio as well as IP licenses.Web giant Google and Chinese PC manufacturer Lenovo have agreed on a $2.91 billion purchase of Motorola.  In 2011, Google acquired Motorola for a staggering $12.5 billion, a deal which many analysts believe was simply over-the-top.

In the 3rd quarter of 2013, the company announced a $248 million operating loss, further casting a doubt on the viability of the Motorola brand, considering the fact that Microsoft had recently acquired Nokia – a bigger brand and all it’s patent rights for only $7.2 billion with great future prospects, including the idea of propelling Windows Phone Operating System to the main stream.

The Motorola deal will allow Google retain ownership of most of Motorola’s patents while Lenovo will be given 2,000 Motorola patent portfolio, including the Motorola Mobility, trademark portfolio as well as licenses to a couple of other intellectual property.

Lenovo will pay Google $660 million in cash and $750 million in ordinary shares, totaling $1.41 billion. On completion of the deal, the web Giant Google will receive a further $1.5 billion in the form of a three-year promissory note.

“The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones,” Lenovo chairman and CEO Yang Yuanqing said in a statement. “We will immediately have the opportunity to become a strong global player in the fast-growing mobile space.