Lenovo, Google agree price in Motorola acquisition

Chinese manufacturer’s spending spree continues with troubled smartphone maker

Tags: ChinaGoogle IncorporatedLenovo GroupMergers and acquisitionsMotorola Mobility (www.motorola.com)USA
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Lenovo, Google agree price in Motorola acquisition Lenovo will pay just $2.91bn for Motorola Mobility, less than three years after Google acquired it for $12.4bn. (Getty Images)
By  Stephen McBride Published  January 30, 2014

Chinese tech behemoth Lenovo has agreed terms with Google for acquisition of Motorola Mobility, online media reported.

Lenovo is amassing a reputation for buying up major properties at bargain prices. It is reportedly going to hand over just $2.91bn for Motorola Mobility, less than three years after Google paid $12.4bn.

ANALYSIS: Lenovo's Motorola acquisition - bargain or bane?

While on the surface, Google appears to have made a staggering loss, the Web giant last year sold Motorola Home to the Arris Group for $2.3bn and will also retain a reported vast majority of the patent portfolio, said to number around 10,000. Analysts believe the patents were Google's main target when it bought the company and that the move to now rid itself of Motorla Mobility will suit Google in a number of ways.

"Google creates a much simplified business environment by divesting itself of Motorola Mobility," said Ian Fogg, director, Mobile and Telecoms.

ANALYSIS: Lenovo's Motorola acquisition - bargain or bane?

"It removes the channel conflict with other Android smartphone makers because Google will no longer have its own competing smartphone hardware division... For Google, this deal is an escape from a difficult business position. When Google bought Motorola Mobility in August 2011 for $12.4bn, Motorola had 3% global handset market share. Now, it's around 1%.

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