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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
When Google acquired Motorola for $ 12.5 Billion 19 months ago, many saw it as an aggressive move on behalf of Google while many saw it as a reckless move. As times progressed, things changed and Google didn’t really go all guns blazing in the handset business as it would have not been received well by its partners. Google has now sold off the handset business of Motorola to Lenovo for $ 2.91 Billion which comes across as a bargain for Lenovo and the same can’t be said for Google which seems to have taken a loss with it but won’t accept the same.
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As a part of the deal, Lenovo will be paying Google $1.41 Billion at the time of signing the deal. Out of these, $660 million will be paid in cash while $750 million will be paid in the form of Lenovo shares. The $1.5 billion that remain will be paid by Lenovo by a 3 year promissory note. Once Chinese and US authorities approve the deal, both the companies can get back to business. Now let us see what is there in the deal for everybody.
When Google acquired Motorola, it was looking towards a brighter future courtesy the patents it had in bag and it would help its partners with the law suits against them. But later in the day, it realised that the whole gamut of patents Motorola had turned out be worth way less than it had hoped to be. On top of it, it could not really give Motorola’s handset business a boost because that would have created a lot of problems to its handset partners because then Motorola would have had an unfair advantage over the rest.
