How it is true that Lenovo Chinese firm acquired the Motorola Mobility from Google? Let’s check it out!

“Lenovo (HKSE: 992) (ADR: LNVGY) and Google (NASDAQ: GOOG) today have entered into a definitive agreement under which Lenovo plans to acquire the Motorola Mobility smartphone business. With a strong PC business and a fast-growing smartphone business, this agreement will significantly strengthen Lenovo’s position in the smartphone market. In addition, Lenovo will gain a strong market presence in North America and Latin America, as well as a foothold in Western Europe, to complement its strong, fast-growing smartphone business in emerging markets around the world.  The purchase price is approximately US$2.91 billion (subject to certain adjustments), including US$1.41 billion paid at close, comprised of US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a sharecap/floor). The remaining US$1.5 billion will be paid in the form of a three-year promissory note.”

So this means that more Motorola products (such as handsets) left into dust? More question bubbling around the air. To make it clear here’s the official word from Larry Page, Google CEO.

In the Google Official Blog, by Larry Page, Google CEO:

“But the smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices. 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. As a side note, this does not signal a larger shift for our other hardware efforts. The dynamics and maturity of the wearable and home markets, for example, are very different from that of the mobile industry. We’re excited by the opportunities to build amazing new products for users within these emerging ecosystems.”

So were guessing that the continuity of Motorola products and services will be hand over to Lenovo company. Therefore, the Google Company will fully devote their strength to Android development. That’s the great thing to the Motorola consumers and Android users. As the matter of fact, Lenovo continuance to keep the brand identity of Motorola products just like they did to IBM PC. But the deal has yet to be approved in the US or China, which is it takes time.

This means we have to wait and see how far this deal goes. What can you say about it? Does Google make a right decision to sell it to Lenovo? Does Lenovo need it for their new strategy to sell new products to their consumers? Let us know what you can say about it.

Disclosure: Lenovo, Google, Motorola Info/Logo/Images/Pictures has a respective copyright. We used it for demonstration purpose only.

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Related Links / Articles / Entries / References / Sources:
Lenovo Newsroom – News Release – Official Site
Official Blog – Google