Latest Techbuzz::Google sells Motorola to Lenovo for $2.91 billion


Google sells Motorola to Lenovo for $2.91 billion

Lenovo will use Motorola's name to enter the US smartphone market


Google is selling Motorola Mobility to Lenovo, giving the Chinese smartphone manufacturer a major presence in the US market. Lenovo will buy Motorola for $2.91 billion in a mixture of cash and stock. Google will retain ownership of the vast majority of Motorola's patents, while 2,000 patents and a license on the remaining patents will go to Lenovo. At the deal's closing, Lenovo will pay Google $660 million in cash and $750 million in stock, while the remaining $1.5 billion will be paid out over three years.

Lenovo CEO Yang Yuanqing said that although his company doesn't have "an effective plan yet," it has confidence that it can turn the currently unprofitable Motorola's fortunes around. Yuanqing also stated that, within a year of the Motorola acquisition, Lenovo expected to sell 100 million smartphones worldwide. In 2013, Lenovo shipped an estimated 45 million smartphones, a 90 percent growth from the previous year.

Google believes Lenovo can turn Motorola into "a major player within the Android ecosystem."

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

Google initially bought Motorola Mobility for $12.5 billion back in 2012, but it said at the time that it was mainly interested in the company's patent portfolio. Now, Google is offloading its subsidiary's handset business, which has been losing hundreds of millions each quarter since the purchase. Google will hold on to Motorola's ambitious Advanced Technology and Projects group, however, and it previously sold off Motorola's set-top box unit for over $2 billion.

Though patents are a large part of what drew Google's interest to Motorola in the first place, those patents haven't been as helpful as Google initially hoped. Google seems to have highly overvalued Motorola's portfolio, which hasn't been able to bring in nearly as much in royalties as either company seemingly expected. It also hasn't been able to use those patents very aggressively, seeing them fail when used in an attempt to block sales of the iPhone. The entire ownership of Motorola has been something of a headache for Google, and it appears that it's finally time for Google to cut its losses.

That's good news for Lenovo, which has been vocal about its intention to move into the US smartphone market this year. Lenovo hasn't made much headway with that until now. It made a bid for BlackBerry late in 2013, but its offer was ultimately blocked. Now, it'll see a much stronger start with the purchase of Motorola. Motorola actually marks Lenovo's second acquisition announcement this month: just last week it said that it had reached a deal to buy IBM's x86 server business.


The purchase of Motorola plays to Lenovo's experience in taking an established brand and building upon it. It purchased its ThinkPad business from IBM in 2005, and has gone on to create a continually successful line of laptops from it. Lenovo is certainly hoping to do the same with Motorola, which has consistently built strong devices but has often struggled against competitors with more marketing muscle.

"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," Lenovo CEO Yang Yuanqing said in a statement. "We will immediately have the opportunity to become a strong global player in the fast-growing mobile space."

"We will become a much stronger number three smartphone company."

Both Lenovo and Google have high expectations for Motorola coming out of the acquisition. Motorola said the acquisition will help it to achieve the rapid growth it's looking for. "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," Motorola CEO Dennis Woodside said in a statement.

In an alleged email to employees, which has been leaked to TechCrunch, Page said that he believes Motorola will do better under a company that can fully commit to a focus on smartphones. "The smartphone market is super competitive, and to thrive it helps to be all in when it comes to making mobile devices," Page wrote. "It’s why we believe that Motorola will be better served by Lenovo."

On a conference call discussing the acquisition, Yuanqing said that Woodside and Motorola's existing management team would be staying on board. Yuanqing also said that he felt the two brands were complimentary, and that both the Motorola and Lenovo brand would remain in use where they were already strong. "A detailed plan will be made after we close the deal," Yuanqing said.

"Why am I so confident? I have several reasons."

Despite Motorola's ongoing struggle to reach profitability, Yuanqing is extremely optimistic about what it will do under Lenovo. "Why am I so confident? I have several reasons." Yuanqing cites five: it will immediately make Lenovo a major smartphone company in the US and give it relationships with over 50 wireless carriers worldwide, Motorola is an established and respected brand, the deal includes important patents and licenses, it will help address new markets with a diverse smartphone lineup, and it brings along Motorola's expertise in mature smartphone markets.

Despite his intention to continue using the Lenovo name where it's strong, Yuanqing emphasized that the Motorola name would play a major role in its ability to compete in the United States and other major markets. "We had a similar opportunity with the Think brand, and we succeeded," Yuanqing said. He believes the acquisition will ultimately make Motorola a far stronger smartphone manufacturer, turning it into a capable competitor against the industry's giants.

"We will become a much stronger number three smartphone company," Yuanqing said, referencing Motorola's position as the third-place Android smartphone manufacturer in the US. "Motorola brings a strong brand, brilliant engineering, great products, [and] outstanding relationships with retailers."


News of Lenovo's acquisition of Motorola comes just a day before Google reports its quarterly earnings. Investors have been interested to know what Google plans to do about Motorola's mounting losses. Tomorrow may not deliver them good news from the previous quarter, but it appears that Google has given its final answer.

Current Affairs: Padma Awards Winners 2014

Padma Awards is the highest civilian awards of our country. They are conferred as three categories, namely, Padma Vibhushan, Padma Bhushan and Padma Shri.

Padma Awards are conferred in the category of Foreigners, NRIs, PIOs and Posthumous awardees. The Awards are given in various fields of activities such as art, public affairs, social work, science and engineering, medicine, trade and industry, literature and education, civil service, sports etc.

'Padma Vibhushan' is awarded for outstanding and eminent service,'Padma Bhushan' for distinguished service of high order and 'Padma Shri' for distinguished service in any field.

The awards are announced on Republic Day every year. The awards are conferred by the President of India at a function held at Rashtrapati Bhavan around March/ April. 

Padma Vibhushan 

SlNo. Name Discipline State/ Domicile
1. Shri K G Subramanyan Art-Painting & Sculpture West Bengal
2. Late Shri Mario De Miranda Art-Cartoonist Goa*
3. Late (Dr.)Bhupen Hazarika Art- Vocal Music Assam*
4. Dr. Kantilal Hastimal Sancheti Medicine – Orthopedics Maharashtra
5. Shri T V Rajeswar Civil Service Delhi

Padma Bhushan 

SlNo.

Name

Discipline

State/ Domicile

 1 Smt. Shabana Azmi Art – Cinema Maharashtra
 2 Shri Khaled Choudhury Art – Theatre West Bengal
 3 Shri Jatin Das Art – Painting Delhi
 4 Pandit Buddhadev Das Gupta Art – Instrumental Music – Sarod West Bengal
 5 Shri Dharmendra Singh Deol aliasDharmendra Art – Cinema Maharashtra
 6 Dr. Trippunithwra ViswanathanGopalkrishnan Art – Classical vocal and instrumental music Tamil Nadu
 7 Ms. Mira Nair Art – Cinema Delhi
 8 Shri M.S. Gopalakrishnan Art – Instrumental Music-Violin Tamil Nadu
 9 Shri Anish Kapoor Art – Sculpture UK*
 10 Shri Satya Narayan Goenka Social Work Maharashtra
 11 Dr. (Judge) Patibandla ChandrasekharRao Public Affairs Germany*
 12 Shri George Yong-Boon Yeo Public Affairs Singapore*
 13 Prof. Shashikumar Chitre Science and Engineering Maharashtra
 14 Dr. M S Raghunathan Science and Engineering Maharashtra
 15 Shri Subbiah Murugappa Vellayan Trade and Industry Tamil Nadu
 16 Shri Balasubramanian Muthuraman Trade and Industry Maharashtra
 17 Dr. Suresh H. Advani Medicine – Oncology Maharashtra
 18 Dr. Noshir H Wadia Medicine-Neurology Maharashtra
 19 Dr. Devi Prasad Shetty Medicine-Cardiology Karnataka
 20 Prof. (Dr.) Shantaram BalwantMujumdar Literature and Education Maharashtra
 21 Prof. Vidya Dehejia Literature and Education USA*
 22 Prof. Arvind Panagariya Literature and Education USA*
 23 Dr. Jose Pereira Literature and Education USA*
 24 Dr. Homi K. Bhabha Literature and Education UK *
 25 Shri N Vittal Civil Service Kerala
 26 Shri Mata Prasad Civil Service Uttar Pradesh
 27 Shri Ronen Sen Civil Service West Bengal

Padma Shri

 

Sl No.

Name

Discipline

State/ Domicile

 1 Shri Vanraj Bhatia Art – Music Maharashtra
 2 Shri Zia Fariduddin Dagar Art – Music – vocal Maharashtra
 3 Smt. Nameirakpam Ibemni Devi Art – Music- Khongjom Parba Manipur
 4 Shri Ramachandra Subraya HegdeChittani Art - Yakshagana dance drama Karnataka
 5 Shri Moti Lal Kemmu Art – Playwright Jammu and Kashmir
 6 Shri Shahid Parvez Khan Art – Instrumental Music-Sitar Maharashtra
 7 Shri Mohan Lal Kumhar Art – Terracotta Rajasthan
 8 Shri Sakar Khan Manganiar Art – Rajasthani Folk Music Rajasthan
 9 Smt. Joy Michael Art – Theatre Delhi
 10 Dr. Minati Mishra Art – Indian Classical Dance-Odissi. Orissa
 11 Shri Natesan Muthuswamy Art – Theatre. Tamil Nadu
 12 Smt. R. Nagarathnamma Art – Theatre Karnataka
 13 Shri Kalamandalm Sivan Nambootiri Art – Indian Classical Dance-Kutiyattam Kerala

Smt. Yamunabai Waikar Art – Indian Folk Music-Lavani. Maharashtra
 15 Shri Satish Alekar Art – Playwright Maharashtra
 16 Pandit Gopal Prasad Dubey Art – Chhau dance and choreography Jharkhand
17 Shri Ramakant Gundecha # Art – Indian Classical Music- Vocal Madhya Pradesh
Shri Umakant Gundecha # Art – Indian Classical Music- Vocal Madhya Pradesh
 18 Shri Anup Jalota Art-Indian Classical Music- Vocal Maharashtra
 19 Shri Soman Nair Priyadarsan Art – Cinema- Direction Kerala
 20 Shri Sunil Janah Art-Photography Assam
 21 Ms. Laila Tyebji Art-Handicrafts Delhi
 22 Shri Vijay Sharma Art-Painting Himachal Pradesh
 23 Smt. Shamshad Begum Social Work Chattisgarh
 24 Smt. Reeta Devi Social Work Delhi
 25 Dr. P.K. Gopal Social Work Tamil Nadu
 26 Smt. Phoolbasan Bai Yadav Social Work Chattisgarh
 27 Dr. G. Muniratnam Social Work Andhra Pradesh
 28 Shri Niranjan Pranshankar Pandya Social Work Maharashtra
 29 Dr. Uma Tuli Social Work Delhi
 30 Shri Sat Paul Varma Social Work Jammu and Kashmir
 31 Smt.Binny Yanga Social Work Arunachal Pradesh
 32 Shri Yezdi Hirji Malegam Public Affairs Maharashtra

Shri Pravin H. Parekh Pubic Affairs Delhi
 34 Dr. V. Adimurthy Science and Engineering Kerala
 35 Dr. Krishna Lal Chadha Science and Engineering – Agriculture Delhi
 36 Prof. Virander Singh Chauhan Science and Engineering Delhi
 37 Prof. Rameshwar Nath Koul Bamezai Science and Engineering Jammu and Kashmir
 38 Dr. Vijaypal Singh Science and Engineering – Agricultural Research Uttar Pradesh
 39 Dr. Lokesh Kumar Singhal Science and Engineering Punjab
 40 Dr. Yagnaswami Sundara Rajan Science and Engineering Karnataka
 41 Prof. Jagadish Shukla Science and Engineering USA*
 42. Ms. Priya Paul Trade and Industry Delhi

Shri Shoji Shiba Trade and Industry Japan*

Shri Gopinath Pillai Trade and Industry Singapore*

Shri Arun Hastimal Firodia Trade and Industry Maharashtra

Dr. Swati A. Piramal Trade and Industry Maharashtra

Prof. Mahdi Hasan Medicine-Anatomy Uttar Pradesh

Dr. Viswanathan Mohan Medicine – Diabetology Tamil Nadu

Dr. J. Hareendran Nair Medicine – Ayurveda Kerala

Dr. Vallalarpuram SennimalaiNatarajan Medicine – Geriatrics Tamil Nadu

Dr. Jitendra Kumar Singh Medicine – Oncology Bihar

Dr. Shrinivas S. Vaishya Medicine-Healthcare Daman and Diu

Dr. Nitya Anand Medicine – Drugs Research Uttar Pradesh

Late Dr. Jugal Kishore Medicine – Homoeopathy Delhi *

Dr. Mukesh Batra Medicine-Homeopathy Maharashtra

Dr. Eberhard Fischer Literature and Education Switzerland*
 57 Shri Kedar Gurung Literature and Education Sikkim
 58 Shri Surjit Singh Patar Literature and Education – Poetry Punjab
 59 Shri Vijay Dutt Shridhar Literature and Education – Journalism Madhya Pradesh
 60 Shri Irwin Allan Sealy Literature and Education Uttarakhand
 61 Ms. Geeta Dharmarajan Literature and Education Delhi
 62 Prof. Sachchidanand Sahai Literature and Education Haryana
 63 Smt. Pepita Seth Literature and Education Kerala
 64 Dr. Ralte L. Thanmawia Literature and Education Mizoram
 65 Shri Ajeet Bajaj Sports – Skiing Delhi
 66 Smt. Jhulan Goswami Sports – Women's Cricket West Bengal
 67 Shri Zafar Iqbal Sports-Hockey Uttar Pradesh
 68 Shri Devendra Jhajrija Sports – Athletics- Paralympics Rajasthan
 69 Shri Limba Ram Sports – Archery Rajasthan
 70 Shri Syed Mohammed Arif Sports – Badminton Andhra Pradesh
 71 Prof. Ravi Chaturvedi Sports- Commentary Delhi
 72 Shri Prabhakar Vaidya Sports-Physical Education Maharashtra
 73 Shri T. Venkatapathi Reddiar Others-Horticulture Puducherry
 74 Dr. K. (Kota) Ullas Karanth Others-Wildlife Conservation and Environment Protection Karnataka
 75 Shri K Paddayya Others-Archaeology Maharashtra

Shri Swapan Guha Others-Ceramics Rajasthan
 77 Dr. Kartikeya V. Sarabhai Others – Environmental Education Gujarat
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