Lenovo Buying Motorola’s Handset For Nearly $3 Billion

lenovo motorola
Lenovo has struck a deal with Google that would put Motorola’s cellphone business in its back pocket for roughly $3 billion.

The purchase of Motorola will probably also put to bed rumors of Lenovo purchasing BlackBerry. The company has been looking to step up its mobile efforts for the last couple of years, and Motorola’s existing infrastructure, patent library and brand recognition should help it make a dent here in the US.

Google has confirmed the deal, which will see Motorola Mobility change hands for $2.91 billion. Most of that money will be in the form of cash or a promissory note, but it will also include roughly $750 million worth of Lenovo shares.
Google also insists that this will not affect its other hardware efforts, including those that might involve wearables and smart home appliances. For Lenovo, the deal means that it is now not only the largest PC maker, but it will also soon be the third-largest handset manufacturer in the Americas. Motorola’s existing agreements with retailers and carriers instantly gives the Chinese manufacturer a broad reach into mobile markets all over the globe.

The company also expressed confidence in Moto’s existing team, and in the short term, it does not appear there are plans to close its Chicago headquarters or start laying off employees, including the executives. The company said only that it would do what made sense to grow the brand, and would not commit to keeping existing manufacturing jobs in the US. The current plan appears to be to maintain the Motorola brand where it enjoys recognition and success.

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