Light Reading

Lenovo to Buy Motorola From Google?

Sarah Thomas
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        ADD A COMMENT
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
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
What if the Comcast Merger Fails?
Mari Silbey, Independent Technology Editor, 4/20/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Comcast Merger May Hinge on Hulu
Mari Silbey, Independent Technology Editor, 4/22/2015
Google Ready to Release Thousands of Loons
Sarah Thomas, Editorial Operations Director, 4/20/2015
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
Cats with Phones
Learning Curve Click Here
Pierre could never remember how to use Excel.
Latest Comment