Lenovo announces a 2.9 billion dollar acquisition of Motorola Mobility

Source: Internet
Author: User
Keywords Lenovo acquisitions mobile
Tags brand image business business group continue cross google google + google+

Absrtact: On the evening of October 30, Lenovo announced that it had officially completed its 2.9 billion dollar acquisition of Motorola Mobility. The latter will officially become Lenovo's assets, and Lenovo has 25.6 million shipments to the world's third-largest expert machine manufacturers, after Samsung and

On the evening of October 30, Lenovo announced that it had officially completed a 2.9 billion dollar takeover of Motorola Mobility. The latter will officially become Lenovo's assets, and Lenovo has 25.6 million shipments to the world's third-largest expert machine manufacturer's throne, after Samsung and Apple, market share increased to 8.7% (from IDC data).

At the communication meeting that night, Lenovo chairman and CEO Yang Yang and executive vice president and mobile business Group President Liu June elaborated the Motorola brand status and future planning:

1. Motorola's current status and expectations: At present, Motorola Mobile loss limit has been significantly reduced, product sales doubled, and with the world's top 50 operators to maintain a close relationship. Motorola is also accelerating its transition to 4G products and extending the 4G product line to low-end products. Lenovo is expected to make Motorola's business profitable in four to six quarters.

2. Motorola Mobile operations after acquisition: Lenovo will operate Motorola in the form of a wholly owned subsidiary and its headquarters will continue to be located in Chicago, USA. With the completion of the acquisition, nearly 3,500 employees from around the world will join Lenovo, including about 2,800 employees in the United States, mainly in the design, planning, sales and Support department positions.

3. The executive team is composed of two sides: Lenovo Executive vice president and mobile business Group president Liu June will be the chairman of Motorola Mobility Management Committee, Motorola senior executive Rick Osterloh will continue to serve as Motorola's president and chief operating officer to report to Liu June.

4. Future brand strategy: After the acquisition Lenovo and Motorola will implement a dual-brand strategy, in design and product development to maintain a certain degree of independence. Motorola will continue to be the flagship brand in North America, Western Europe, Japan and other strong markets, in Eastern Europe, the Middle East, Africa, Latin America and China, and Lenovo dual brands coexist, both supply chain and sales to achieve synergy, Lenovo + Motorola dual brand annual sales of 100 million units of the target has not changed.

5. Motorola returns to China: confirms it will return to the Chinese market as a high-end brand portfolio, but there is no specific timetable.

The 6.Moto 360 smart watch and Nexus 6 smartphones are within the range of Lenovo's acquisition, but the next generation of Nexus smartphones has not yet reached a partnership plan with Google.

7. Evaluate Motorola's cooperation with Google: Liu June said that Motorola's culture and Lenovo were closer, and that the two-year relationship with Google was not fully integrated – Google was more concerned about Motorola's patents and its marginal business, which Lenovo viewed as its core business.

For the acquisition, Yang said Motorola was, is and will remain a high-quality and technologically advanced brand image. The future association will only let it to do better, more and more flourish, will not damage the brand image of its brilliance. We can make sure that you will see more and more innovative and creative products from Motorola.

Google CEO Larry Page says: "Lenovo is a company dedicated to creating excellent products for users, and we are pleased to see Motorola join Lenovo." ”

and the industry analysis that this is Lenovo Group Capital exchange market an important move, with the aid of mergers and acquisitions, Lenovo in the short term can enter the mature market. At the same time, with the acquisition of more than 2000 patents from Motorola and Third-party cross patent licensing, Lenovo can be a good implementation of patent defense to protect themselves and pay lower patent costs, so as to obtain a better competitive position. At the same time, Lenovo has been able to easily gain recognition from Western companies as a company that is constantly merging globally and has good integration experience.

Lenovo is reported to have announced a takeover plan for Motorola Mobility earlier this year, with approvals from regulators in the US, China, the European Union, Brazil and Mexico for nearly 10 months. It was also the fifth time since 2005 that the US Overseas Investment Commission (CFIUS) had approved the acquisition of US companies by Lenovo after acquiring IBM's X86 server business.

Specific acquisition Amount:

The deal's total acquisition of about $2.91 billion trillion, including about $660 million in cash, and 519,107,215 new shares of Lenovo's common stock (worth 750 million dollars, about 4.7% of Lenovo shares) have been handed over to Google when the deal is complete. The remaining 1.5 billion dollars will be paid in three-year promissory notes. In addition, Lenovo has paid Google about 228 million dollars in extra cash compensation, mainly for the cash and operating capital that Motorola held at the time of delivery.

Specific acquisition of assets:

Through the acquisition, Lenovo will get Motorola's brand, including Moto X, Moto G, Moto E and the Droid series, some of the smartphone products, Moto 360 smart watches, for Google Foundry Nexus series, and Motorola's future product planning. In addition, it includes 3,500 employees worldwide, more than 2000 patents and third party cross patents.

Google will retain most of Motorola's mobile patent portfolio ownership, and Motorola will have access to these rich patent portfolios and other intellectual property rights. Motorola will hold more than 2000 patent assets, a large number of patent cross licensing agreements and Motorola Mobile brand and trademark portfolio.

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