Google sells Motorola Mobility to Lenovo for $2.91 billion, Project Ara to remain in Google

We know we are late, but still, if you are unaware, Google has announced that they are selling off the Motorola Mobility to Lenovo. According to Google's blog post, the Chinese electronic giant Lenovo will pay $2.91 billion to acquire Motorola Mobility smartphone business. To remind you, Google acquired Motorola for a blasting $12.5 billion in 2012, which makes the sale price seem suspiciously low.

In terms of the financial specifics, Lenovo will pay Google $660 million in cash and $750 million in Lenovo ordinary shares at the time of closing. The remaining $1.5 billion will be paid in the form of a three-year promissory note.

That said, as part of the deal, Google will maintain ownership of the vast majority of the Motorola's patent portfolio, including current patent applications and invention disclosures. Vast majority of the Motorola's patent portfolio include the Project Ara modular phone too. Motorola's Advanced Technology group which developed the device, as well as its patents will remain with Google.

That said, Lenovo will receive over 2,000 patent assets, alongside the Motorola Mobility brand and trademark portfolio. Lenovo will also receive a license to the portfolio of Motorola patents, which Google is keeping.

The deal is expected to close in the coming months, depending on the regulatory approvals in both the United States and China.

"The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space," said Yang Yuanqing, chairman and CEO of Lenovo.

"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.

Source - Google

Via - The Verge