It’s Official and it’s all wrapped up. After acquiring Motorola just shy of a couple of years ago, Google has decided to pass on the ownership papers to Lenovo. A deal worth of almost $2.61 Billion which includes part cash and part stock has been agreed and although this deal does cover some of the patents to be transferred, it is mainly for the devices such as Motorola’s Moto G and Moto X. It is widely believed that this move would propel Lenovo to make a move in the US markets.
The news is likely not to affect the launch of Moto G in India which is planned for February 5th, 2014. CEO of Google, Larry Page said the following of the acquisition:
“Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem, this move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”
Having bought Motorola for about 12.5 Billion USD back in 2012, this definitely seems like a loss driven deal for Google. It is said that even at the time of acquisition, Google were more interested in the patents portfolio of Motorola than the devices department. However, they will be holding on to the Advanced Technology and Projects Group at least for the time being. The deal though represents good value for Lenovo which many experts believe is the new growing force in the world of smartphones. After purchasing the x86 server business from IBM, this deal only assures that Lenovo does indeed have some big plans for the future and some of the big players in the market would be well advised to keep an eye on them.
Via: The Verge