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Lenovo completes takeover of Motorola Mobility
2014-10-30 12:22:00| Telecompaper Headlines
(Telecompaper) Lenovo has completed the acquisition of Motorola Mobility from Google. The Chinese company will maintain Motorola as an independent subsidiary, still based in Chicago, with almost 3,500 employees worldwide, including 2,800 in the US. It will continue with the Motorola brand, as well as the Moto and Droid series of phones. Motorola said it will continue to focus on "pure Android and fast upgrades, and remain committed to developing technology to solve real consumer problems". In addition to the foothold in the US, the deal puts Lenovo in third place in the global smartphone market, according to the company. The latest figures from IDC show Lenovo alone took 5.2 percent of the market in Q3 with 16.9 million smartphones sold, good for fourth place in the market. The company aims to sell over 100 million mobile devices this year, including tablets. The sale of Motorola Mobility was first announced in January. Lenovo is paying USD 2.91 billion, including USD 660 million cash, USD 750 million in its own shares and a note for USD 1.5 billion due on the third anniversary of closing the deal. Google also received USD 228 million in cash held by Motorola at closing. While Google held on to much of Motorola's intellectual property, Lenovo has a licence to the IP and retains over 2,000 Motorola patents. Lenovo reiterated its intention to turn the Motorola business profitable within 4-6 quarters.
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Category:Telecommunications