Lenovo’s acquisition of Motorola story behind: Google approached immediately after acquisition
May 22 news , Lenovo earlier this year to $ 2.1 billion acquisition of Motorola 's news sparked a lot of questions . Google Why should such a low price will initially spend $ 12.5 billion to buy Motorola sold to Lenovo ? In addition , Lenovo actually buy are what have led to doubts - which patents included in the association, and which remain in Google ?
Technology website TechRadar Lenovo's Beijing headquarters recently came to seek more information about the acquisition of :
Everything starts with Google 's acquisition of Motorola after a phone call .
"When Google announced the acquisition , we first made contact and Motorola ." Executive vice president Liu Jun, Lenovo's mobile business , said , "We know that Google is the owner of Android , but also that they may not want the hardware side business . "
Purely for the sake of the latter patent ( is true ) Lenovo assumes Google 's acquisition of Motorola , so they decided to show their interest in the hardware, come to sell may occur to prepare.
"We believe that Google wants obviously just patents, " Liu said, "so we feel have a chance to win ( Motorola ) hardware business ."
"We have contacted Google - Eric Schmidt and Andy • • Rubin - and they had a lot of discussion , but Google finally decided to try to do their own hardware ."
Back to the beginning
Subsequently , Google spent more than a year's time to find a way for Motorola's hardware production and ways to sell their own services , but they failed to do so . Therefore , Google has to go back to find the association.
"A year and a half later, Google to reconsider their strategies in the end of 2013 , we received a Google Chairman Eric Schmidt called the phone, he asked if we also are interested in Motorola ."
Liu said Lenovo is very keen to acquire Motorola , the whole process was very fast.
"We always thought that Motorola is worth buying , so we are given to Schmidt answered in the affirmative , and the signing of the contract took only 3-4 months ."
Although the acquisition has not yet been completed - Lenovo hopes can be completed within the next three months - but the association for Motorola under the command of the operation in the future will be how they have got some ideas.
Although we often get the question " before the completion of the transaction can not be determined " This answer, but the association did said they hope to expand Motorola's R & D capabilities . This move is very interesting , because this is when the Google acquisition of Motorola cut off part immediately .
"After Google 's acquisition of Motorola , they shut down a lot of the R & D department and now Motorola only two R & D centers in Chicago and Cincinnati up ." Liu said.
"We think this is wrong . After we took over, it will be changed , because for us, the R & D is one of the most valuable assets and we will maintain the current R & D team , its development, and establishment of the new R & D center . "
As to the issue after the acquisition of the brand identity , do not expect that there will be major changes. Lenovo hopes to continue in their respective fields to use the most powerful brands.
Lenovo senior vice president of Aymer de Lencquesaing told us: "When we acquired Motorola, we have obtained a high profile brand in the mobile phone market, Lenovo's own brand is also very strong , but in the world , this is not . a smartphone will be linked to the brand and , while Motorola is absolutely so . "
" In some markets , we will use only a single brand , while in some other markets , the two brands will co-exist , all permutations are possible ."
If you want to know how it works that way in the end , think ThinkPad bar. When Lenovo acquired IBM 's personal computer business in 2005 , they maintained the ThinkPad name and continue to have influence in its place using the brand.
"IBM has its own tradition in China , so we retained the Lenovo and ThinkPad business ." Chen Xudong , senior vice president of Lenovo Group , explains .
"These two brands have a good market share, so we had to locate these product lines and keep their traditions and we will be treated in a similar way to Motorola ."
Brand is one thing, but at the same time , Lenovo will get a lot of " competitive technology patents ." The acquisition means that Google from the 12,000 patents Motorola buy them there will be a 2000 owned by Motorola all . Lenovo already has a patent owned 6500 .
As for those who remain in the Google patent , Lenovo will also get support from a former lifetime there . So in the future innovation which they will not encounter any legal obstacles.
For those who have not yet get the Lenovo market - such as North America and Europe - Motorola, the company will also be very valuable stepping stone.
Chen Xudong believe that this move will allow the association in the field with real strength .