Motorola Mobility is getting a new parent company! Just a few short years after Google bought Motorola for $12.5 billion, Lenovo announced today they are purchasing Motorola for $3 billion.
At a purchase price of approximately US $2.91 billion (mix of cash and Lenovo stock), Lenovo will gain over 2,000 unknown Moto patents, the MOTOROLA brand, Motorola Mobility, and Motorola’s portfolio of handsets including its future product roadmap. Google will still keep most of the Motorola patent portfolio it received from the acquisition in 2011, but Lenovo will receive a license for access.
This acquisition will help Lenovo gain a strong market presence in North America and Latin America, as well as a foothold in Western Europe, something it has ultimately wanted to accomplish in conjunction with it’s fast-growing smartphone business in emerging markets around the world.
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. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space,” said Yang Yuanqing, chairman and CEO of Lenovo
The deal still needs to be approved by regulators in both the United States and China. How do you feel about this acquisition? Will a non-North American owner of the Moto brand change your perception of the brand? Comment below and let us know!
