Motorola Mobility Sold to Lenovo
Latest News of Mobile Phones
Now Motorola Mobility is officially owns by Lenovo. Lenovo announced its intention to buy American phone manufacturer Motorola off of Google back in January of this year. Find out more by reading this article we’eve found.
Lenovo said Thursday that it has closed its acquisition of Motorola Mobility, gaining a larger foothold in the US and other developed markets.
Under the agreement, Lenovo will pay former parent Google $2.91 billion, including $660 million in cash and $750 million in newly issued Lenovo stock. The remaining $1.5 billion will be paid to Google in the form of a three-year promissory note. While Lenovo gets Motorola’s mobile device business, Google keeps the patent portfolio.
The transfer of Motorola to Lenovo from Google marks the end of a short chapter for the storied handset vendor. Credited with the invention of the cellphone, Motorola had suffered over the last several years as Apple’s iPhone and Samsung’s Galaxy lineup rose in prominence. Under Google, Motorola had refined its product portfolio to just a few devices, and developed a focus on the low end and on emerging markets with its affordable Moto G and Moto E smartphones.
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The combined operations will have 8 percent of the global smartphone market, making it the third-largest smartphone vendor in the world, according to Strategy Analytics. The research firm said the two businesses will benefit from increased scale, deeper distribution channels and bigger marketing and R&D budgets, but must contend with a slowdown in growth at Lenovo and Motorola’s continued losses.
Source: Roger Cheng
Image Source: jnyemb