Wheelings & Dealings: Lenovo to Buy Motorola from Google for $3 Billion

By Blaise McNamee January 29, 2014

It looks like the mobile world is in for another shakeup.  Word is spreading that Google is nearing a deal to sell its Motorola handset division to Lenovo for nearly $3 billion.

A source for China Daily revealed that the acquisition will include more than 10,000 mobile communications patents currently held by Google, and will likely be announced Thursday morning in Beijing.

Google first acquired Motorola in 2011 for $12.5 billion, more than four times the current expected sale price.  This can largely be explained by declining revenues from the cellphone giant, which has been operating more or less independently from Google over the past two-and-a-half years.  Business Insider reports that Motorola revenues have shrunk from $1.78 billion in Q3 2012 to $1.18 billion in Q3 2013.  Indeed, Google reported a $248 million operating loss in its Motorola Mobility segment during the same quarter.

According to Reuters, Lenovo will be offering a combination of cash, stock and deferred payments in exchange for the handset division and is being advised by Credit Suisse Group.  Google, meanwhile, is being advised by Lazard Ltd.

This development follows shortly after Lenovo’s announcement Tuesday to restructure into four different business groups: PC, Mobile, Enterprise, and “Ecosystem and Cloud.”  The company also recently revealed plans to buy IBM’s low-end server business for $2.3 billion.  It thus seems clear that the Chinese PC maker is serious about expanding into other major technology markets.  The company recently said its tablets and smartphones will appear in the US and European markets by 2015.

Both Google and Lenovo have remained silent on the issue.  Both advisory firms declined to comment as well.  However, Lenovo did reveal to China Daily that they will indeed be announcing a “major acquisition” shortly.

Further analysis is soon to come.  Stay tuned for the latest coverage on the development.




Edited by Cassandra Tucker
SHARE THIS ARTICLE
Related Articles

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More

Contribute Your Brain Power to The New Intelligence

By: Paula Bernier    6/28/2018

The three events that are part of The New Intelligence are all about how businesses and service providers, and their customers, can benefit from artif…

Read More

TMC Launches The New Intelligence - an Unparalleled AI and Machine Learning Conference & Expo in Florida

By: TMCnet News    6/28/2018

TMC announced the launch of The New Intelligence conference and expo - The Event Powering the AI Revolution. This exciting new event will take place o…

Read More