Though the sale has not yet been finalized by either company, Google CEO Larry Page posted a statement on the company’s blog yesterday to confirm the deal.
“The smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices,” he wrote. “It’s why we believe that Motorola will be better served by Lenovo—which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”
Of the $2.9 billion, $1.41 billion is to be paid at the close of the agreement, with $660 million in cash and $750 million in Lenovo shares. The remaining $1.5 billion will be paid as a three-year promissory note.
As part of the acquisition, Lenovo will take control of the Motorola brand and Motorola’s complete portfolio of smartphones, including the Moto X, Moto G, and the Droid Ultra series.
Google, meanwhile, will retain ownership of most of Motorola’s patents, although Lenovo will receive a license to the portfolio and over 2,000 patent assets.
“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, Lenovo, in a statement.
The deal has Lenovo poised to be a significant player in the mobility industry – Motorola is the third largest Android smartphone manufacturer in the Americas, while Lenovo is one of the top mobile device manufacturers in China.
“We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business,” said Yang.
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