Motorola Transaction

On January 29, 2014, Lenovo agreed to acquire Motorola Mobility from Google for $2.9 billion.

This webpage provides a range of background and information about the transaction, and will be updated on a regular basis.

PDFPress Release: Lenovo to Acquire Motorola Mobility from Google
PDFPresentation: Acquisition of Motorola Mobility
PDFLenovo in the United States Factsheet
PDFMotorolaMobility.com

July 17 statement from Lenovo Chairman and CEO, Yuanqing Yang on Motorola's recent momentum:

"Motorola is winning in the market, and their recent results show why they can be such a strong growth engine for Lenovo once our acquisition is approved. Their recent product launches have been successful. Their performance is even stronger than expected. And this is the perfect time for Lenovo to acquire this business and accelerate our own global mobile growth. Once our acquisition is complete, we will be able to bring more innovative products to more consumers around the world – and we will be able to build on the momentum Motorola has built in the market."
Yuanqing Yang, Chairman and CEO, Lenovo
July 17, 2014

Lenovo Statement on EU Approval of Motorola Transaction

"We can confirm the information on the EU website (http://europa.eu/rapid/press-release_MEX-14-0627_en.htm) is accurate. We are pleased with our progress as we continue to work through the necessary regulatory clearances."

Select Media Coverage:


Global Smartphone Market Analysis and Outlook:

The global smartphone market has witnessed extraordinary expansion in recent years, but this explosive growth has been accompanied by significant disruption. This report assesses the dynamics that are facilitating continued disruption in the global smartphone landscape and the factors that will drive further change over the next three to five years. It concludes that there is significant opportunity for new or existing smaller players to build a strong and profitable position in this dynamic market.

PDFA report published by CCS Insight: Executive Summary
PDFA report published by CCS Insight: Full Report

Third-Party Commentary:

"I wouldn't want to be selling Android boxes when Lenovo enters the U.S. smartphone market with the Motorola brand."
Philip Elmer-DeWitt, Fortune
July 10, 2014
http://fortune.com/2014/07/10/why-lenovos-pcs-are-outselling-apples-macs/

"There are a lot of parallels here"…"Lenovo was strong in its home country in PCs, but the IBM buy gave them a global brand and a lot of access. In buying Motorola, they are buying a major brand, and a company that has established relationships with carriers."
Frank Gillett, Forrester Research Analyst
February 1, 2014
http://www.sfgate.com/technology/article/Lenovo-s-acquisitions-show-global-ambition-5196672.php

"It's a better deal for Motorola…Instead of a software maker controlling a hardware maker, it's a hardware maker controlling them…Lenovo has a successful track record of growing IBM's PC business globally."
Neil Mawston, Strategy Analytics Analyst
January 20, 2014
http://dealbook.nytimes.com/2014/01/30/over-just-7-days-lenovo-wraps-up-two-deals-totaling-5-2-billion/?_php=true&_type=blogs&_r=0

"But make no mistake Lenovo is now a major player and it is noticeable Google has taken $750m of Lenovo stock options as part of the Motorola sale. If history tells us anything, it is Google rarely backs a loser…"
Gordon Kelly, Forbes Contributor
February 12, 2014
http://www.forbes.com/sites/gordonkelly/2014/02/12/lenovo-was-right-to-buy-motorola-just-look-at-thinkpad/

"We expect Yang can turn this into a profitable company in two years' time"…"Yang has a very good track record of acquiring non-profitable businesses and turning them to profit."
Ricky Lai, Guotai Junan Securities Analyst
February 1, 2014
http://www.sfgate.com/technology/article/Lenovo-s-acquisitions-show-global-ambition-5196672.php

"Do not underestimate Lenovo"…"Lenovo could replicate their success in PCs, particularly at the low end of smartphones."
Mark Moskowitz, JPMorgan Analyst
February 1, 2014
http://www.sfgate.com/technology/article/Lenovo-s-acquisitions-show-global-ambition-5196672.php#page-2

"It makes strategic sense for both Google and Lenovo…It will give Lenovo a strong brand in the mobile space outside of China that they don't have today, and it gives them deep operator relationships with AT&T and Verizon. And for Google, they're able to focus on the services side, which is what they're best at, and retain the patent holdings."
Andrew Costello, IBB Consulting Principal
January 29, 2014
http://dealbook.nytimes.com/2014/01/29/google-seen-selling-it-mobility-unit-to-lenovo-for-about-3-billion/

"If there was a Chinese company that was well-positioned to see this deal come off, it's Lenovo…They've done the dance before and they know what the steps are."
Jim Lewis, CSIS
January 31, 2014
http://www.reuters.com/article/2014/01/31/us-motorolamobility-lenovo-regulation-idUSBREA0U06C20140131

"Lenovo was strong in its home country in PCs, but the IBM buy gave them a global brand and a lot of access…In buying Motorola, they are buying a major brand, and a company that has established relationships with carriers"…the Motorola buy "puts Lenovo in position to have leading offerings in smartphones, tablets, and PCs — a vital trifecta that no other global manufacturer has — besides Apple."
Frank Gillett, Forrester Research
January 30, 2014
http://theweek.com/article/index/255824/why-pc-giant-lenovo-is-betting-on-motorola