Google sells Motorola Mobility to Lenovo for $2.91 billion
It wasn't so long ago that a phone called the Moto X hit the market. Some called it the best Android phone released to date (let's not talk about the camera). Well, the ink seemed to have only just dried, but Google has announced that they are selling Motorola (Motorola Mobility) to Lenovo for $2.91 billion. In a statement by CEO Larry Page, he said that "Motorola’s patents have helped create a level playing field, which is good news for all Android’s users and partners."
One of the reasons given by Larry page on the sell, is the focus required to stay competitive in the smartphone market. Interestingly, but not surprisingly, he points out that Google is not getting out of the hardware business for wearable tech (Glass and the rumored Watch) or home markets (Nest).
“As a side note, this does not signal a larger shift for our other hardware efforts. The dynamics and maturity of the wearable and home markets, for example, are very different from that of the mobile industry. We’re excited by the opportunities to build amazing new products for users within these emerging ecosystems.”
Lenovo will be keeping the Motorola brand, just as they did when they purchased IBM's ThinkPad back in 2005.
In this deal Google will also be keeping the patents it received when they acquired Motorola Mobility. Lenovo will get a license to the portfolio and receive over 2,000 patent assets. Google will also keep the Advanced Technology and Projects group led by former DARPA director Regina Dugan. This is the division that was working on the Project Ara modular phone. Project Ara aloud you to configure your phone like blocks. When the camera or storage needed to be upgraded, just replace that part of the phone without having to get a whole new phone.
“Google will retain the vast majority of Motorola’s patents, which we will continue to use to defend the entire Android ecosystem.”
“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 rich 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.”
Now, as this information is being released, keep in mind that the deal has not yet been approved in the U.S. or China. It will be interesting to see if the U.S. or China try to block this acquisition and for what reason, if any.
Source:
http://www.theverge.com/2014/1/29/5359068/google-keeping-motorola-advanced-technology-group-project-ara-phone
http://googleblog.blogspot.com/2014/01/lenovo-to-acquire-motorola-mobility.html http://investor.google.com/releases/2014/0129.html
https://twitter.com/google/status/428653486490664960
