It has been quite a long time that Google had announced its subsidiary, Motorola to be sold to Lenovo back in January this year, and the purchase is officially complete now. All the paper works are completed, and the subsidiary company will be onwards called as Motorola: a Lenovo company. The purchase of Motorola by Lenovo is for $2.91 billion. The Chinese tech giant has now extended its business by purchasing the world’s first mobile phone maker.
Yang Yuanqing, chairman and CEO of Lenovo, said:
“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,“
A blog post was done by Rick Osterloh, who currently leads Motorola acting as the President and Chief Operating Officer of the company in its official blog. He, in the post, said that the crew is thrilled by the change and merging the two firms next year will not easy. He also said that they will keep on working to bring exciting products in the future.
Rick Osterloh will retain his position in the company, and the company’s headquarter will remain located in Chicago. Lenovo will now own the recent products of Motorola, which will include the new versions of the Moto G and Moto X, and the Moto 360 smartwatch.
Out of the $2.91 billion dollars which was agreed to be the purchase money, $660 million will be paid in cash, $750 million in newly issued Lenovo stock, and the remaining $1.5 billion will be paid to Google in the form of a three-year promissory note. Lenovo will get only the mobile device business of Motorola, the patents (which are about 2,000 in number) will be owned by Google and Lenovo will be licensed to use them.
What is your opinion on the purchase of Motorola by Lenovo? Will it maintain the reputation of Motorola in the smartphone business as it has done in the computer industry? Leave your comments below.