Friday, February 7, 2014

Google Sells Motorola to Lenovo

Google officially announced the sell of Motorola to Lenovo

Dear ladies and gentelmen, it's officiallay announced now. In a move that is about to sever one of the few remaining strong US ties to the smartphone world, Google has agreed to sell off the recently acquired Motorola Mobility to Lenovo. The total amount that Lenovo will pay to Google is estimated 2.91 billion US Dollars, 660 million Dollars are to be paid as cash, Google will acquire ordinary Lenovo shares of worth 750 million Dollars and beside this there is a three-year promissory note worth $1.5 billion between the two companies.

It is expalined in a blog post recently by Larry Page why Google has decided to make this deal, saying that essentially Google couldn't manage "all-in" when it came to making mobile phones, and that it has not such brains and time to be successful in the field of mobile making. Page says that Lenovo's experience will be better handle Motorola Mobility, and in this way Google is free to focus on making Android operating system better.

Possibly the good news in the announcement by Page is this sentence: "Lenovo intends to keep Motorola’s distinct brand identity." The specifics of the deal aren't clear outside of the $2.91 billion figure, but Page does say that "Google will retain the vast majority of Motorola’s patents, which we will continue to use to defend the entire Android ecosystem." This means that Lenovo will not be getting its hand on the 24,000 patents that are considered the main reason for Google's acquisition of the US manufacturer in the first place, and we're also told that the Advanced Technology and Projects division of Motorola (which is behind Project Ara) will stay in the hands of Google.
Motorola being part of Google has been both incredibly interesting and somewhat disappointing. The devices, products and ideas of Motorola have been awesome in the making of the Moto X, the Moto G, the Moto Maker customization suite, and the promise of Project Ara; but, consumer response has been low and devices haven't sold that well. Even at that time, the assumption was that Google's aim was Motorola's patent portfolio, and Google was never expected to have much interest in the devices division of the company. Google has since kept Motorola separate from the main Google business ever since acquiring it, although it is being run by ex-Googler Dennis Woodside.

Lenovo is one of the largest and well known mobile phone manufacture company whose headquarters are in China, but it has tried to increase its market share in the U.S., and this deal would certainly change that. Lenovo has been promising to make its push into the U.S. market by 2015. It was rumored to have been one of the companies bidding for BlackBerry last year, but that move was blocked by the Canadian government. Motorola would make for a much better acquisition, and a major shift in power for Lenovo, as the company is quite experienced with such deals. It is also noteworthy that back in 2005, Lenovo bought off IBM's ThinkPad laptop division, essentially paving its way to the top. Lenovo is now achieved the title of the world's biggest Personal Computer maker company and it is getting popular day be day. Now it is to see that how Chinese company manag Motorola. There is a question rises that whether Lenovo will make mobile phone under the name of Motorola or it start print its own name as well. It seems that the company has decided to play their best cards in U.S. to gain market share .

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