Lenovo finalizes $2.91 billion deal to acquire Motorola from Google

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Lenovo has today finalized the $2.91 billion deal for acquiring Motorola from Google. Lenovo’s acquisition which was announced back in January comes just three years after Google had acquired Motorola Mobility. This is a good move for both Google and Lenovo, although it may not be a good move for consumers.

Motorola is now a part of Lenovo family. Lenovo’s acquisition opens a new chapter for iconic brand Motorola, which never made Google any money. The Motorola brand will remain headquartered in Chicago with branches worldwide, so little will change at the company which is now a Lenovo subsidiary. Motorola President Rick Osterloh will continue his service following the deal, with Liu Jun, the head of Lenovo’s mobile business becoming chairman of the Motorola board.

Writing on Motorola’s company blog, Osterloh made a point of explaining that both the Moto and Droid family devices will also continue as normal, but the company will focus on “pure Android” and release quicker upgrades for consumers.

Google had acquired Motorola for $12.5 billion three years ago, but it said at the time that it was mainly interested in the company’s portfolio. Now, Google is selling Motorola, which has been losing hundreds of millions since the purchase.

Although Lenovo ranks among the world’s top five smartphone makers, its market share in the U.S., is zero. Motorola which has a strong relationship with telecommunication carriers can help fend off patent lawsuits. Motorola will have good times with Lenovo, which specializes in ThinkPad line of PCs and Yoga line of tablet-PC convertibles.

Via: NewsLenovo