Lenovo's merger and acquisition of Motorola return to China how far

The market rumors that Lenovo will make an offer to BlackBerry this week have not yet landed, and the long, updated Motorola officer, who made a meaningful "tick" on the morning of October 30, seems to be hinting that something is going into the countdown.

Yesterday evening, Lenovo Group finally opened its announcement to complete the acquisition of Motorola Mobile from Google.

As chairman and chief executive of Lenovo Group, Yang will also wear a uniform with Motorola's representative "M" logo, but a "Alenovocompany" after Motorola.

It is understood that after the acquisition Lenovo will be a wholly-owned subsidiary of Motorola Operations, its headquarters will continue to be located in Chicago, United States. After the acquisition, nearly 3,500 employees from around the world will join Lenovo, including about 2,800 employees in the United States who design, plan, sell and support Motorola's products on a full-time basis.

Among them, Lenovo executive vice president and mobile business Group president Liu June will be the Motorola Mobility Management Committee chairman, Motorola senior executive Rickosterloh will continue to serve as Motorola president and chief operating officer.

Public information shows that the total amount of the acquisition is about $2.91 billion (there may be some adjustments after delivery), including about 660 million dollars in cash, and 519 million new shares of Lenovo's common shares (worth 750 million US 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.

However, for Lenovo, the acquisition of Motorola does not bring significant benefits in the short term.

According to his earlier statement, Lenovo is expected to make Motorola's business profitable in four to six quarters.

In fact, on January 30 this year, Lenovo's announcement that it had bought Motorola Mobility at $2.9 billion a high price from Google had surprised the industry.

In the move, Motorola's patents were interpreted by the industry as the biggest attraction to Lenovo. After all, as a pioneer in the field of mobile communications, Motorola has a lot of patent resources, which is an important asset for any company, not just Google, but for Lenovo.

At the time, the industry's view was that Lenovo had been in a disadvantageous position on patents, and now with Motorola Mobility, Lenovo has indirectly accumulated a lot of patent resources in the patent field, which is meaningful for Lenovo to march on the international stage.

After the deal, Lenovo will have access to more than 2000 patent assets, a large number of patent cross licensing agreements and Motorola Mobile brand and trademark combinations through Motorola.

But after the acquisition, Google will retain the majority of Motorola Mobile patent portfolio ownership, and Motorola will only be the use of these patent combinations and other intellectual property rights license.

"The merger is dominated by Motorola's influence in the North American and Latin American markets, with thousands of research and development teams and relationships with operators," he said. Although the ' old ' Motorola patents have not been bought, we believe that enough patents and patents have been made available to enable us to expand in mature markets such as North America at lower prices. (after all) in these mature markets, no patents are impossible. Yang said in an interview with reporters including the first financial daily.

Explaining the difference between Google and Lenovo's intention to buy Motorola, Yang explained: "Google for Motorola's acquisition is more important or patent, for a major software companies, Google is engaged in the number of hardware is still a bit acclimatized." Motorola is a marginal business in Google, but Lenovo is a central business and the future will be an important point in Lenovo's performance growth. ”

Behind this, Motorola's current major market performance in North America is not ideal.

Motorola's sales for the North American market in the second quarter were 1.4 million, with a market share of 3.4%, ranked seventh, according to data from the Strategyanalytics (SA) company. In the same period, ZTE, the Chinese handset maker, accounted for 7.4% of sales by 3 million units, while Alcatel's sales were 1.8 million.

IDC's survey data showed that in the third quarter of 2014, Lenovo smartphones shipped 16.9 million units in the global market, with a market share of 5.2%, ranking fourth. The row came before the association of Millet, its third-quarter smartphone shipments reached 17.3 million, the global market share rate from the same period last year 2.1% rose to 5.3%.

In his view, the biggest goal of the first phase is to rapidly develop the advantages of two brands and accelerate Motorola's growth in Asia, and of course our most important issue is that Motorola's return to China will certainly bring Motorola back to China in the shortest possible time.

"When Motorola will be able to return to China, there is no definite answer." When coming into China, Motorola will not be a single product, but a very strong combination. "Lenovo executive vice president and mobile business Group president Liu June added.