Lenovo Purchases Motorola from Google for $2.91 Billion

[[Coi] Mr.CLuBBeR]

The deal has gone through

Back in January, it was announced that Google would be selling its Motorola division to Lenovo pending approval from authorities. Google, which had acquired the mobile company for $12.5 billion in 2012, was looking to sell it and now that all parties involved have signed off on the deal, Lenovo has acquired Motorola for $2.91 billion.
Of the $2.91 billion, $660 million will be in cash while 519,107,215 of newly issued, ordinary shares of Lenovo stock (valued at $750 million) was transferred to Google at the close of the transaction. As for the remaining $1.5 billion, that will be paid to Google in the form of a three-year promissory note. However, a separate cash compensation of $228 million will also be paid to Google to cover the cash and working capital held by Motorola at the time when the deal closed.
According to the deal, however, Google will maintain ownership for most of Motorola’s patent portfolio though Motorola will be given a license to the patents and other IPs in it. However, Motorola will retain 2,000 patent assets in addition to a number of patent cross-license agreements and the Motorola brand.
With Motorola under its umbrella, Lenovo has high expectations according to Lenovo executive vice president Liu Jun who said, “With the complementary strengths of our two companies, we expect to sell more than 100 million mobile devices this year – including smartphones and tablets – by leveraging the Lenovo brand’s leading market position in China, our shared momentum in emerging markets, and Motorola’s strong foothold in mature markets like the U.S.”
The acquisition of Motorola makes Lenovo the third largest maker of smartphones, which will now has access to the Moto X, Moto G, and Droid series of smartphones.
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