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
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Webinar Archive