Lenovo Close to $3 Billion Deal to Acquire Motorola from Google [Update 2]

Well this is certainly something we didn’t ever expect to see. According to Reuters, China’s Lenovo group is nearing the final stages of chatter to close a $3 billion dollar deal to pick up Motorola’s handset division from Google. That was not a miss type at all. The deal is set to not only pick up the company, but of course their patent holdings as well.

Of course the information is coming from sources that are close to the matter, while Google, Motorola and the various groups in discussion on the topic have not commented on the information as of yet. However, it is said that Lenovo will be using a combination of cold hard cash, stocks and deferred payments to close the deal. An official statement and/or announcement on the deal could come from any of the parties involved later today.

Did this totally come out of left field to anyone else?

Source: Reuters

Update: Looks like this story is gangbusters everywhere. China Daily is posting up the news claiming at least $2 billion which includes 10,000 patents. Lenovo is said to be having a press conference Thursday morning to announce what just happened. THis will certainly give Lenovo a leg up and a chance to finally break into the US market finally.

It is also being confirmed from sources at TechCrunch as well. Citing that Google held off on the sale for tax purposes. Which doesn’t surprise us.

Update2: Google has officially confirmed it via their Investor Relations page. Final talley states $660 million in cash, $750 million in Lenovo ordinary shares and the remaining $1.5 billion paid over three years in promissory notes. Final purchase amount totals $2.91 billion and is subject to certain adjustments. Total number of patents that Lenovo is picking up is only 2,000. Along with Motorola Brand and trademarks. Lenovo is also gaining a license to Google sportfolio patents and other intellectual property

“Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere,” said Larry Page, CEO, Google.

“As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this,” said Dennis Woodside, CEO, Motorola Mobility.

 

Need more? Lenovo just tweeted this out.

BREAKING NEWS: Lenovo to Acquire @Motorola Smartphone Business from @Google http://t.co/SD9IlKpqqI pic.twitter.com/9CKsRclzsn

— Lenovo (@lenovo) January 29, 2014

Larry Page stepped up on Google’s Official Blog and laid down the reasoning behind the sale. Google’s primary goal with the purchase of Motorola Mobility was the patent portfolio. Owning those has helped level the smartphone playing field for all of Android. They obviously retained a large majority of the patents and only sold of 2,000 of them to Lenovo.

On a side note, this isn’t the death of Motorola. Lenovo has a track record of bringing things to life and profitable. I can only see good things going forward for Motorola and any future Android handsets.