Lenovo Close to $3 Billion Deal to Buy Motorola from Google

Discussion in 'Android News' started by dgstorm, Jan 29, 2014.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    This almost sounds like an April Fool's Joke, but we are nowhere near April. According to multiple reports from major news organizations like Reuters, CNBC and others, Lenovo may actually be in final talks with Google to purchase Motorola for $2.91 Billion USD. According to "sources close to the matter" this would be Lenovo's way of buying themselves into the lucrative but difficult to break into U.S. smartphone market. Here's a quote with more of the details,

    This came way out of left field and blind-sided us, but in many ways doesn't seem that surprising. From the beginning, Google really only wanted Motorola to get hold of their patents so they could defend against Apple and Microsoft. It's been pretty clear that Motorola as a company doesn't really fit into Google's business model. Perhaps Google realized they want to focus on being a software and services company. Motorola is primarily a hardware company, which requires a different business style than Google is used to. Google has done a remarkable job so far in insulating themselves from Motorola in regards to the other OEMs in the Android world, but how long will they be able to keep up that unnatural "firewall?"

    This move also looks good for Lenovo on several levels. Lenovo wants into the U.S. smartphone market and what better way to do that than to start with the pioneer of mobile phones. Even the new approach that Motorola has taken recently by offering the Moto X and Moto G for discounted prices seems to fit very well with the way Lenovo does business. If this report turns out to be true, this could be a win-win for Lenovo, Motorola, Google, the other Android OEMs and the consumer. Share your perspective.

    Update: This story is now official. Google will be selling Motorola to Lenovo. Here's a link to the official press statement from Google: Lenovo to Acquire Motorola Mobility from Google ? Investor Relations ? Google

    Source: CNBC
  2. wicked
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    wicked DF Administrator Staff Member Premium Member

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    WOW :icon_eek:

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  3. pc747
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    pc747 DF Administrator Staff Member Rescue Squad

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    2nd that WOW. When I saw that on other news sites I was some how hoping that news was fake.
  4. pc747
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    pc747 DF Administrator Staff Member Rescue Squad

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  5. kodiak799
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    kodiak799 Well-Known Member

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    This is Google making nice with its OEM partners, who were always very leary of the Moto/Google combo.

    Bad news for Android, I think, is that I'd expect Lenovo to push a lot more WinMo devices from Moto.

    Now what's really shocking - Google paid $12.5B for Moto, and are selling it for $3B? I know they wanted the patents, but that's a pretty big hit....ok, Google is retain the patents and license them to Lenovo.
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  6. kodiak799
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    kodiak799 Well-Known Member

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    And the happiest company on the planet right now is probably Intel :)
  7. Briankbl
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    Briankbl Member

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  8. 94lt1
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    94lt1 DF Super Moderator Staff Member Premium Member

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    I'm gonna be Ill.....:banghead:
  9. cr6
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    cr6 DF Super Moderator Staff Member

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    This sucks! I was really looking forward to Google putting out an amazing new Moto device... a new Nexus perhaps.... SOMETHING!

    tap'n
  10. guidot
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    guidot Developer Relations Staff Member Premium Member

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    Please edit. It's $2.91B
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  11. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    Yeah... sorry about that. We got some erroneous last minute info about the amount. The OP has been update with the previous correct amount of roughly $3B. Thanks guidot.
  12. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    I'll bet this was Google's long-term plan the whole time. Take over Moto to get the patents, restructure to get the company into a potentially better business model/strategy, sell it off to someone who can make it work for them better...

    I doubt it, but it's even possible Google and Lenovo planned this years ago...
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  13. creaky
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    creaky Member

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    Major bummer. I was hoping for a Google super phone with Moto's build quality and antennas. After 2 Samsung phones pooped the bed I'm done with them.
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  14. lloydstrans
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    lloydstrans Well-Known Member

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    Food for thought. The USofA has blocked both Huawei and ZTE from importing phones to these shores over security concerns about spying. With Snowden's revelations about the NSAs unscrupulousness. We should even be more leery of China's willingness to exact revenge. Just saying they may get banned here as well.

    Sent from my DUM phone using Droid Forums
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  15. kodiak799
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    kodiak799 Well-Known Member

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    On the bright side, maybe Lenovo will put SD cards back into Moto phones!

    This could be really good for Moto, and the consumers. If pc and phone are converging, I think Lenovo understands one size does not fit all and might give us the hardware combinations we keep crying for. Sure, Samsung and Sony sell computers, too, but Lenovo sells at least 3X as many as either of them.
  16. xeene
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    xeene Well-Known Member

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    So... Moto was pushing built in USA phones. Now that they will be owned by China, what will they say? Built in USA financed by the great Wall?
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  17. gadgetrants
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    gadgetrants Well-Known Member

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    By far the worst news of the day that I've heard so far...and the day is almost over so I think this tops the list. My primary complaint is that so much of the PR spin that Google produced in buying Motorola's cell-phone division was just plain bunk. And even that would be OK, but consider: I've grown to really embrace the Moto X, and having watched Lenovo's PC line for the last two years, I'll tell you that we can kiss the X goodbye. I think the news will come in a variety of forms....first the rapid outflow of Googorola's design/development team, then leaks about designing the "revolutionary, new phone," and then finally, the chilling interview with US Lenovo executives basically saying, "Yeah, we really need to clean out the pipeline of previous phones and WOW will you be amazed with what we have coming after that."

    Nah, I think I'll pass on that.

    Anyway, someone PLEASE explain to me: Google sells Motorola Mobility for $2.9 billion. AND THEY BUY NEST (THE "SMART" THERMOSTAT COMPANY) FOR $3.2 BILLION?!??!?!?! Have they lost their minds?

    -Matt
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  18. jspradling7
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    jspradling7 Active Member

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    Those poor Moto employees.

    "GOOGLE bought us?!! Oh crap!"

    tick-toc-tick-toc...

    "China bought us??? Son of a beech!"
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  19. RETG
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    RETG Member

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    Well, guess my next phone will be LG or maybe HTC. No more Motos for me; not with them owned by Lenova. They make junk laptops, even their higher end. Even my employer dropped them after two years due to the problems and went back to Dell.
  20. Preach2k
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    Preach2k DF News Team Premium Member

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    So does this mean Moto is going down? I am glad I stuck with Samsung!!!