Ten months ago, Google announced its decision to part with Motorola Mobility. Now it's official, Google sold Motorola to Lenovo for $2.91 billion. The total worth includes $660 million in cash, $750 million Lenovo shares, and a 3-year promissory note worth $1.5 billion.
With the acquisition of the Motorola brand and their innovative smartphones such as Moto X, Moto G, Moto E and the DROID series, Lenovo steals Xiaomi's crown as the 3rd largest smartphone maker in the world. Man, that was fast!
Motorola's HQ (headquarters) will still be in Chicago as it will operate as a wholly-owned subsidiary. Motorola's 3,500 employees across the globe are now part of Lenovo, as expected.
According to Yang Yuanqing, chairman and CEO of Lenovo:
“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.
This partnership has always been a perfect fit. Lenovo has a clear strategy, great global scale, and proven operational excellence. Motorola brings a strong presence in the U.S. and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination.”
According to Larry Page, Google's CEO:
“Motorola is in great hands with Lenovo, a company that’s all-in on making great devices”.
What are your thoughts about the acquisition? Comment below.