Earlier today we reported that Lenovo will be acquiring Motorola for around $3 billion. Google CEO Larry Page confirmed this by saying that the company has just signed an agreement to sell Motorola for $2.91 billion saying that this is an important move for Android users everywhere.
Page explains that “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.”
“Lenovo has the expertise and track record to scale Motorola into a major player within the Android ecosystem. They have a lot of experience in hardware, and they have global reach. In addition, Lenovo intends to keep Motorola’s distinct brand identity—just as they did when they acquired ThinkPad from IBM in 2005. Google will retain the vast majority of Motorola’s patents, which we will continue to use to defend the entire Android ecosystem. “
Aside from retaining most of Motorola’s patents Google is also reportedly going to keep Motorola’s Advanced Technology and Patents Group as revealed by Lenovo. This group is responsible for developing Project Ara, which is a modular smartphone concept, as well as other experimental products. The group is headed by DARPA director Regina Dugan will be integrated into Google’s Android team and will be moving its headquarters from Sunnyvale to Google’s Mountain View office.
Google acquired Motorola in 2012 to expand its patent portfolio enabling it to create a stronger Android ecosystem. Over the past couple of months several great products have been released by Motorola under Google’s ownership such as the Moto G and the Moto X.
The deal between Google and Lenovo will still have to be approved by both the U.S. and China which should take quite some time. Right now it’s still business as usual at Motorola.