Lenovo plans to acquire the Motorola Mobility smartphone business from Google. Lenove says this will significantly strengthen the company’s position in the smartphone market. The purchase price is approximately US$2.91 billion.
Lenovo, which in 2005 acquired IBM’s PC business and its legendary PC brand, will now acquire world-renowned Motorola Mobility, including the MOTOROLA brand and Motorola Mobility's portfolio of innovative smartphones like the Moto X and Moto G and the DROIDTM Ultra series. In addition to current products, Lenovo will take ownership of the future Motorola Mobility product roadmap.
Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.
Jack Gold, Principal Analyst, J.Gold Associates, LLC., commented, “Google got wanted they wanted from Motoroloa – patents, engineering talent and mobile market/device insight. They got rid of old Motorola management some time ago and the company as a device manufacturer was never really strategic to Google. They don’t need to be in the device business. Lenovo gets to buy into a major brand with still substantial channels outside of Lenovo’s primary mobile presence in China. And it gets an engineering staff that knows phones for worldwide sales.” It’s a win-win, he claimed.
Talking points form the C-Suite: Yang Yuanqing, chairman and CEO of Lenovo, said, “We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business.”
"Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere,” said Larry Page, CEO, Google.
"As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this,” said Dennis Woodside, CEO, Motorola Mobility.
Sierra Wireless/In Motion Technology
Sierra Wireless will acquire In Motion Technology. In Motion provides rugged in-vehicle mobile routers tightly integrated with an advanced mobile-optimized security system and a management and application platform. The complete solution enables organizations to connect and manage mobile operations, vehicles and workforces.
With complementary product portfolios and channels, Sierra Wireless and In Motion will together provide a broad choice of device-to-cloud solutions for enterprise customers. “In Motion will strengthen our leadership position in M2M and broaden our Enterprise Solutions portfolio,” said Jason Cohenour, President and CEO of Sierra Wireless.
According to a report that originated on Bloomberg.com, Satya Nadella will be the next CEO of Microsoft. The board is also supposedly talking about replacing Bill Gates as chairman. Nadella has been with the company for 22 years and is currently the executive vice president of its Cloud and Enterprise group.
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