Lenovo have deal with Google on Motorola for $2.91 billion

Upcoming models of Motorola’s smartphone will come with Lenovo’s logo, ‘Lenovo’ the Chinese manufacturer company buy the 'Motorola brand' from Google. The deal take place in next month, depending on regulatory in US and China, Lenovo will pay the amount of $2.91 billion to the Google. Lenovo will pay $1.41 in cash and rest in three year.

Motorola was acquired by Google in 2012 at the price of $12.5 billion, now it’s Lenovo’s turn to handle the Motorola. Google will retain ownership of the most Motorola’s patents, while 2,000 patents and a license on the remaining patents will go to Lenovo.

Lenovo CEO Yang Yuanqing said

His Company doesn't have "an effective plan yet," it has confidence that it can turn the currently unprofitable Motorola's fortunes around, within a year of the Motorola acquisition, Lenovo expected to sell 100 million smartphones worldwide. The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones, we will immediately have the opportunity to become a strong global player in the fast-growing mobile space. In 2013, Lenovo shipped an estimated 45 million smartphones, a 90 percent growth from the previous year.    

According to Google 

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

Motorola CEO Dennis Woodside said in a statement,” 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.”