Motorola Mobility is now a ‘Lenovo company’. The $ 2.91 billion acquisition is finally over which was announced back in February. “The iconic Motorola brand will continue, as will the Moto and DROID says Motorola president, Rick Osterloh. He also added that the company will continue to focus on pure Android and fast upgrades, and remain committed to developing technology to solve real consumer problems.
Now speaking of the total breakdown of the acquisition whose cost is approximately US$2.91 billion, including approximately US$660 million in cash and 519,107,215 newly issued ordinary shares of Lenovo stock, with an aggregate value of US$750 million, representing about 4.7 percent of Lenovo’s shares outstanding, which were transferred to Google at close. The remaining US$1.5 billion will be paid to Google by Lenovo in the form of a three-year promissory note. A separate cash compensation of approximately US$228 million was paid by Lenovo to Google primarily for the cash and working capital held by Motorola at the time of close, states an official press statement from Lenovo.
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. Motorola Mobility will now remain as a subsidiary of Lenovo after the acquisition and its new headquarters will be in Chicago.