Lenovo today completed the acquisition of Motorola Mobility for $2.91 billion, which was paid in cash and Lenovo shares.
This acquisition makes Lenovo the third biggest smartphone maker in the world. However, Lenovo does not get everything that Motorola is responsible for. While it gets its hands on Motorola’s mobile device business and products, Google will keep the company’s patent portfolio.
Motorola’s President and Chief Operating Officer Rick Osterloh is optimistic about the future. In a blog post, he wrote: “With an impressive portfolio of smartphones, wearables and PCs, our two companies will be uniquely positioned to push the boundaries of choice and value, and bring exciting new experiences to people everywhere.”
Of course, there will be challenges ahead. Lenovo’s rapid growth in recent years is being challenged by up-and-comers such as Xiaomi, while Motorola continues to make significant financial losses. Google attempted to pare back the company’s portfolio of products in a bid to get the manufacturer back on track. It will be interesting to see where the two companies go from here.