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Devices/smartphones

Lenovo Closes Moto Mobility Buy From Google

RESEARCH TRIANGLE PARK, N.C. -- Lenovo (HKSE: 992) (ADR: LNVGY) and Google (NASDAQ: GOOG) announced today that Lenovo’s acquisition of Motorola Mobility from Google is complete.

The acquisition of the Motorola brand and Motorola's portfolio of innovative smartphones like Moto X, Moto G, Moto E and the DROIDTM series, as well as the future Motorola product roadmap, positions Lenovo as the world’s third largest maker of smartphones.

Lenovo will operate Motorola as a wholly-owned subsidiary. Motorola’s headquarters will remain in Chicago. With the completion of the acquisition, Lenovo welcomes the addition of a new portfolio company with nearly 3,500 employees around the world – including about 2,800 in the U.S. – who design, engineer, sell and support Motorola’s outstanding devices.

Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to this rich portfolio of patents and other intellectual property. Motorola will retain over 2,000 patent assets and a large number of patent cross-license agreements, as well as the Motorola Mobility brand and trademark portfolio.

The total purchase price at close was approximately US$2.91 billion (subject to certain post-close adjustments), including approximately US$660 million in cash and 519,107,215 newly issued ordinary shares of Lenovo stock, with an aggregate value of US$750 million, representing about 4.7 percent of Lenovo’s shares outstanding, which were transferred to Google at close. The remaining US$1.5 billion will be paid to Google by Lenovo in the form of a three-year promissory note. A separate cash compensation of approximately US$228 million was paid by Lenovo to Google primarily for the cash and working capital held by Motorola at the time of close.

Lenovo Group Ltd. (Hong Kong: 992)

nasimson 10/30/2014 | 10:34:34 PM
who owns the patents > Google will maintain ownership of a majority of the Motorola Mobility patent portfolio,
> while Motorola will receive a license to this rich portfolio of patents and other intellectual
> property. Motorola will retain over 2,000 patent assets and a large number of patent
> cross-license agreements ...

Does it mean that Motorola has more than 5,000 patents where after Google retains majority patents, Motorola still retains over 2,000 patents? Or am I missing something here?

Its a bit ironic that Motorola that had very rich R&D didnt go far with its patent portfolio when it had a first mover advantage in the land of then world's largest telecom market.
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