In 2011, Motorola Mobility was acquired by Google for $12.5 Billion. Now it seems that Google does not seem bright future with Motorola. They wanted to sell it off. The new product Motorola Moto G is geared up for launch and such a news take place.
Lenovo is buying Motorola Mobility
Lenovo will acquire Motorola Mobility for a small amount of $2.91 Billion. Lenovo seems to be serious about this deal and is looking forward to become stronger in the mobile market.
From the $2.91 Billion, $1.41 billion will be paid by Lenovo at the close of the deal. $660 Million will consist of cash
and $750 million in Lenovo ordinary shares. While the remaining $1.5 Billion will be paid by Lenovo in the form of 3-year promissory note.
Even after this deal Google will maintain the ownership of various patents of Motorola Mobility portfolio. Lenovo on the other hand will still receive 2,000 patents and the Motorola Mobility brand and the trademark.
Google said that the loss from the Motorola Mobility revenues was -21%. Motorola Mobility had last $248 million in the last quarter. So Motorola Mobility was in the red line even after its acquisition from Google.
Lenovo had made great acquisitions in the past. In the year 2005, Lenovo had purchased IBM`s personal computer division for $1.25 billion. After this purchase Lenovo became the third largest computer maker.
We wish luck for Lenovo to make Motorola Mobility business turn green and earn profits for them. Till then stay tuned on MobileJury.