Lenovo Officially Brings Motorola Into Their Mobile Family Fold For $2.91 Billion
It came as a comparative bargain, too. Lenovo's $2.91 billion buyout of Motorola Mobility comes a little over a year since Google acquired the division for $12.5 billion, though Google retains a majority of the Motorola Mobility patent portfolio.
Under new ownership, Motorola will operate as a wholly owned subsidiary with its headquarters staying in Chicago, Illinois. At present, Motorola is home to almost 3,500 employees around the globe, 2,800 of which live in the U.S. It's not clear if any job cuts are in Motorola's future, but for now, the company will continue to design, build, and sell Android devices.
"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. "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."
Lenovo has big expectations for its new brand. The company believes it can sell more than 100 million mobile devices (smartphones and tablets) this year by leveraging Lenovo's position in China and Motorola's strong foothold in mature markets like the U.S.