Lenovo announced today to buy Motorola Mobility from Google for $2.91 billion. Google, however, will keep the majority of Motorola’s patents. Lenovo will pocket more than 2000 patents with the acquisition.
The deal is subject to approval by Chinese and US authorities.
Better known as a PC maker, Lenovo expanded to mobile phone business in 2002 through the establishment of a joint venture Xoceco, a local consumer electronics manufacturer. Three years later Lenovo acquired the stake held by Xoceco in the joint venture. Now Lenovo is one of the largest smartphone brands in terms of shipments.
Yang Yuanqing, CEO of Lenovo, seems very happy, when sharing the news with Chinese media today, about the fact that the company “would become the third largest smartphone maker worldwide, after having been the No. 1 in global personal computer market”. He added that the position of the world’s third largest isn’t the goal for the acquisition but that the capabilities and potential of Motorola is what Lenovo values.
The advantages of Motorola, he said, include “a strong brand, outstanding engineering and technologies, connections with telcos and retailers, markets covered including North America and Latin America.
The became the largest personal computer brand after it acquired the PC business from IBM. Last week Lenovo announced to acquire IBM’s x86 server business for $2.3 billion.