Light Reading
Another day, another crazy M&A scheme: Sources tell Reuters Google is looking to unload its newly acquired handset division to Lenovo.

Lenovo to Buy Motorola From Google?

Sarah Reedy
1/29/2014
50%
50%

Google is reportedly looking to offload its recently acquired Motorola Mobility division to the Chinese smartphone maker Lenovo, according to reports Wednesday afternoon.

Sources told Reuters and China Daily that Lenovo Group Ltd. (Hong Kong: 992) is looking to purchase the handset maker from Google (Nasdaq: GOOG). According to China Daily, the deal could be announced as soon as tomorrow. Reuters suggests the deal is worth nearly $3 billion. China Daily pegs it at it more than $2 billion.

Buying Motorola Mobility would give Lenovo a much bigger operation in the US. For Google, it would be a way to offload a unit that's been operating at a loss, though the Android maker would also have to give up the division's 10,000 patents. Google acquired Motorola Mobility in 2012 for $12.5 billion. (See Android's Chinese Challengers and Google Closes $12.5B Motorola Deal.)

UPDATE: Google officially announced the sale of Motorola Mobility to Lenovo for $2.91 billion. Google will retain ownership of the "vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures." Lenovo will receive a license to the patents and other IP, along with 2,000 patent assets and the Moto brand and trademark portfolio, the companies said.

In a blog post, Google CEO Larry Page wrote that the sale would allow Google to devote its energy to driving innovation across the Android ecosystem:

    Lenovo has the expertise and track record to scale Motorola into a major player within the Android ecosystem. They have a lot of experience in hardware and they have global reach. In addition, Lenovo intends to keep Motorola’s distinct brand identity -- just as they did when they acquired ThinkPad from IBM in 2005.

— Sarah Reedy, Senior Editor, Light Reading

(16)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/30/2014 | 3:56:01 PM
Re: It's official
So true. They just got to move from the burbs to a great new spot in the city. Now what?!
derac7020
50%
50%
derac7020,
User Rank: Lightning
1/30/2014 | 3:51:07 PM
Re: It's official
I'm guessing the folks still working at MOT in Chicago aren't all that excited about it either.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/30/2014 | 3:29:12 PM
Re: It's official
I didn't think Samsung ever really left?

It seems like a crazy decision, but I suppose it's really not when you break down the numbers and consider Google's MO as you've all mentioned. Could be a positive for everyone except HTC!
derac7020
50%
50%
derac7020,
User Rank: Lightning
1/30/2014 | 11:36:17 AM
Re: It's official
Factor in the sale to Arris and cash and it gets closer to that $5M number Google originally discussed about the patents.   They got Samsung to come into the Android fold again, too.
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/30/2014 | 11:26:19 AM
Re: It's official
Are the patents worth, what, $9 billion though? 
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
1/30/2014 | 11:07:09 AM
Re: It's official
From what I understand, it is a good thing the decision to buy MM was made by Larry Page hisself--otherwise head(s) would have rolled for buying high and selling slow. Perhaps what Google really wanted was the Motorola patents, which it's mostly keeping.
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/29/2014 | 10:23:43 PM
Back to the future
Someone just made the case to me that Lenovo is doing the same thing as it did when it was looking for a leg up in the laptop business. Back then, it bought IBM's ThinkPad line and ran with it. Can it do the same with another big brand in the smartphone sector?
Liz Greenberg
50%
50%
Liz Greenberg,
User Rank: Light Sabre
1/29/2014 | 7:14:10 PM
Re: It's official
You are right Sarah.  Google is fundamentally not a hardware company.  I would expect that even Google Glass will eventually be licensed to others. Google is an ideas and software company that focuses on disruption and the bottom line.  The patent portfolio makes more sense for them than the actual Motorola name and hardware.
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/29/2014 | 6:30:16 PM
Re: It's official
In fact Strategy Analytics is already saying that the buy could make Lenovo the 3rd largest smartphone vendor in the world with, er, 6% market share:

http://blogs.strategyanalytics.com/WSS/post/2014/01/29/Motorola-and-Lenovo-Become-Worlds-3rd-Largest-Smartphone-Vendor.aspx
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/29/2014 | 6:06:08 PM
Re: It's official
And it really does seem like it was all about patents in the end. Google cited some of its Moto phone launches, but it really never leveraged it as much as it could. Its Android ecosystem of partners is the cause of that, but still, Moto never did much for it, but maybe its patents still can.
Page 1 / 2   >   >>
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Photos: Qualcomm Takes Over San Francisco
Sarah Reedy, Senior Editor, 9/19/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed