Lenovo buys Motorola Mobility now for just $2.91 Billion.
How does that sound to you?
Yep, this happens again. Google made the same purchase sometimes ago for $12.5 billion and now Lenovo purchases Motorola and takes the hold.
This could be somewhat difficult to digest for most Moto lovers because they might have never expected such deal. Lenovo has been a bit popular when it comes to tablets and laptops. However, now it seems they plan to enter the mobile arena and Moto acquisition is not a bad idea for this.
The news has just gone viral after the Chinese manufacturer made its ‘definitive agreement’ publicly official. The company’s existence is currently frivolous in the United States, so the Moto acquisition could be a strategy to be prominent in the smartphone industry.
The total acquisition of $2.91 billion includes $1.41 billion paid ($660 million cash and $750 million in Lenovo’s ordinary shares). The rest of the $1.5 billion will be paid in 3 year promissory note.
Still Google will hold the possession of majority Motorola Mobility patent portfolio. Lenovo will get a license to this particular portfolio of patents. Moreover, the buyer will obtain more than 2000 patent assets and the Motorola brand/trademark portfolio too.
For your information, Google had acquired the same company in August 2011 and after that came up with stunning devices like Moto X and Moto G. Despite this, Google had to lose millions of dollars each quarter. That’s the reason why they have handed over it to Lenovo.