Motorola is now a Lenovo company: $2.9 billion acquisition complete (Updated)

by: Bogdan PetrovanOctober 30, 2014

motorola lenovo logo 

Update: In a blog post titled “Hello, Lenovo” Motorola had this to say about its new status:

As excited as we are about what’s changing, we’re also pleased with what we are carrying forward with us. We will be a wholly owned subsidiary of Lenovo and remain headquartered in Chicago’s Merchandise Mart while maintaining offices around the world, including in Silicon Valley. The iconic Motorola brand will continue, as will the Moto and DROID franchises that have propelled our growth over the past year. We will continue to focus on pure Android and fast upgrades, and remain committed to developing technology to solve real consumer problems. And we will continue to develop mobile devices that bring people unprecedented choice, value and quality.

Original post:

Google and Lenovo announced today that the $2.9 billion acquisition of Motorola Mobility has been completed. Starting today, Motorola, the pioneer of mobile phones and one of the most iconic brands in consumer electronics, is a fully owned subsidiary of Lenovo.

Announced on January 29, 2014, the sale sees Lenovo taking over Motorola’s brand and smartphone portfolio, around 3,500 employees (most of them in the US), as well as some of Motorola’s patents and patent licenses. Google, however, will keep “a majority” of Motorola’s patent portfolio. Google paid $12.5 billion for Motorola back in 2011, in a move that most analysts called a patent grab.

Lenovo is paying about $660 million in cash and $1.5 billion in a 3-year promissory note, and Google will also receive shares of Lenovo stock worth approximately $750 million.

Rich Osterloh will continue to lead Motorola as President and CEO, and the company will keep its Chicago headquarters.

choice, competition and a new spark of innovation”

“Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market. By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation,” said Yang Yuanqing, chairman and CEO, Lenovo.

Lenovo claims it can bring Motorola back to profit within four to six quarters from the completion of the takeover. With Motorola in the fold, Lenovo hopes to sell 100 million mobile devices this year, for the third place in the market, behind Samsung and Apple.

In the past, Lenovo said Motorola would operate autonomously and that it will be its main presence in the Western markets, where the company still has great brand recognition.

  • Pranav S Sriram

    But the question is, will it still have Stock Android?

    • MasterMuffin

      They’ll probably keep it as a daughter company

    • Edgars

      Probably no

      • Pranav S Sriram

        Thats sad :( I hope they don’t stop manufacture of the moto series at least

        • Lucas Baker

          Did you ignore the article when they had a quote from Motorola saying “The iconic Motorola brand will continue, as will the Moto and DROID franchises that have propelled our growth over the past year. We will continue to focus on pure Android and fast upgrades”

          • Pranav S Sriram

            I guess I didn’t read that… Thank God haha XD

    • Ryan

      They say they are still committed to the fast updates so yea, and that the Moto series will continue is even more awesome!

    • Since both Lenovo and Moto utilize Android OS’s, I don’t see them spending to much time or money in re-inventing the wheel. Most likely Lenovo already knows which parts of the Moto it wants to assimilate into its Lenovo devices so it shouldn’t take long before their new, highly competitive devices, are ready for market. It will be interesting to see if they keep the Moto brand or merge it with the Lenovo name some how…

    • Chris

      It will Cuz they don’t want angry stock android nerds throwing rocks at their Windows

    • brenden gonzalez

      did you read the stat meant from them yes they will continue with stock android Motorola calls it pure android they said we will continue to focus on pure android. there’s your answer.

  • PsyGik

    As long as Mr.Kutcher doesn’t add his input.

    • Chris

      He will..

  • Fa-Di

    bye bye Motorola :)

  • flye

    Bought for 12.9b sold for a penny?

    Are the patents worth that much?

    • Lucas Baker

      When Apple continually sue you, yes

  • msal

    Does this affect the Nexus 6 in any way?

    If not, I don’t care.

    • Chris

      Why would it? Unless the Chinese hate nexus devices nexus is gonna be around

    • Lucas Baker

      I suppose if Lenovo really really wanted to they could stop Motorola from manufacturing Nexus 6’s but all that would do is hurt profit for Motorola so is very unlikely

  • If you notice Google is getting a large chunk of Lenovo stock, so if Lenovo does what they say about the turn around in the short amount of time quoted, that stock could become worth more than the cash paid out.

    • Chris

      Still owned by Forigners

  • AbbyZFresh

    Will all Moto phones smell like Kung Pao chicken and yellow rice now?

    • Kettzy

      Which Lenovo device smells like that by the way? However, I would’ve liked to see a company like Motorola as an independent firm. It’s pretty sad that original innovators see such ends.

      • Chris

        It’s sad google had to sell them out. But it’s no surprise that it’s head of everything is a middle eastern

    • David Rutla

      Good question! I really hate my countrymen who own big US established businesses and sell them to China or India or any other country. We import too much and its killing the economy and less jobs for the middle class worker

    • Spiffer

      Does this mean they used to smell of cheesy burgers and watery beer?

    • Chris


  • MasterMuffin

    Nexus 6 by Lenovo :P

  • Tony G.

    I hope they keep the Motorola quality. At least when starting my Turbo that I am getting today it will still say “a Google company”.

  • fredphoesh


  • Chris

    Not too happy that it’s owned by bunch of Forigners but at least its main offices will remain in America. No outsourcing of jobs and putting thousands of Americans out of work.

  • mohd sultan


  • Will Ś.


  • BT Onedem

    So… Nexus 6 is now Lenovo?