Lenovo Eyes International Expansion

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1Q 2014 | IN-1018327

 

The Motorola Deal Details

NEWS


Google announced January 29, 2014, it was selling its Motorola Mobility smartphone unit to Lenovo for about US$2.9 billion, just 2 years after the search giant had snapped up the company in its largest-ever deal. Google paid US$12.5 billion for Motorola Mobility in 2011. Lenovo will pay US$660 million in cash, US$750 million in Lenovo shares, plus a US$1.5 billion 3-year promissory note.

While it is jettisoning the mobile manufacturer, it will keep the vast majority of the 17,000 Motorola Mobility patents it had acquired with the purchase. Patents have become a key battleground among tech firms—especially in mobile. Lenovo will keep some patent assets, 2,000 patent licenses, and the Motorola Mobility brand and trademark. Lenovo has stated it will continue to sell Motorola’s recently launched Moto X and G.

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