& cplSiteName &

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   >   >>
Sarah Thomas
50%
50%
Sarah Thomas,
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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
Sarah Thomas
50%
50%
Sarah Thomas,
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   >   >>
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
April 4, 2018, The Westin Dallas Downtown, Dallas
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Here's Pai in Your Eye
Alan Breznick, Cable/Video Practice Leader, Light Reading, 12/11/2017
Ericsson & Samsung to Supply Verizon With Fixed 5G Gear
Dan Jones, Mobile Editor, 12/11/2017
The Anatomy of Automation: Q&A With Cisco's Roland Acra
Steve Saunders, Founder, Light Reading, 12/7/2017
You Can't Fix OTT Streaming Problems If You Can't See Them
Mike Hollyman, Head of Consulting Engineering, Nokia Deepfield, 12/8/2017
Eurobites: Ericsson Restates Its Financials, Warns of Impairment Charges
Paul Rainford, Assistant Editor, Europe, 12/8/2017
Animals with Phones
Don't Fall Asleep on the Job! Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed