Feeds

Hello Moto: Lenovo grabs Motorola biz for $3bn. But Google's KEEPING the patents

The Chinese are coming and let a 1,000 lawsuits bloom

Secure remote control for conventional and virtual desktops

Lenovo has signed a deal to buy the loss-making Motorola Mobility smartphone manufacturer for $2.91bn, but a switched-on Google is keeping the patents owned by the firm it gobbled two years ago for $12.5bn.

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

Beijing-headquartered Lenovo has made no secret of the fact that it would like to buy an established smartphone vendor in the US and European market. While Lenovo has been growing strongly in the Chinese domestic market, the company has little presence in the Western sector, which is largely sewn up between Apple and Samsung.

According to the latest data Lenovo is the fifth-largest smartphone seller in the world, with 4.5 per cent of the market. Another half a per cent increase would take it to the number three position, and another ten to second after overtaking Apple. That's not possible without getting serious presence in markets where people buy smartphones often and at a high price.

"As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet," said Dennis Woodside, CEO of Motorola Mobility. "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."

But while an established brand (who didn't have a RAZR ten years ago?) Motorola's mobile arm has been making losses for years, and the value of the company is now largely predicated on its patent portfolio. Motorola built the first commercial mobile phone back in 1972 and has amassed a large stash of intellectual property that Googorola is now using to try and get royalties from.

That legal jamboree looks set to continue. Under the terms of the deal Google keeps almost all of Motorola's intellectual property, although Lenovo will get a bundle of around 2,000 patents from the deal. It will also have the licensing rights to the remaining IP, and Google indicated that it was looking forward to adding a new Android adherent.

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

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.