Lenovo is now the proud parent of Motorola Mobility after acquiring the business for $2.91 billion from Google.
"Today we achieved a historic milestone for Lenovo and for Motorola - and together we are ready to compete, grow and win in the global smartphone market," said Yang Yuanqing, CEO of Lenovo. "By building a strong No. 3 and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation."
While Motorola is credited with inventing the cell phone, the company has suffered for many years given the rising stature and prominence of Apple's and Samsung's smartphone lineup. Under Google, however, Moto refocused its efforts on a short list of devices mainly targeted at low-end and emerging markets. These included the Moto G and Moto E.
Combined with Motorola, Lenovo now owns 8 percent of the global smartphone market, making it the third-largest smartphone manufacturer in the world.
For now Motorola will be run as a wholly owned subsidiary and will continue to be based in Chicago. It will keep Rick Osterloh as its president and chief operating officer.
"In Lenovo we have a partner that shares our mission and that brings global scale, a diverse product portfolio and a track record of seizing strategic opportunities and making the most of them," said Osterloh in a blog post. "Together we will go farther, faster. With an impressive portfolio of smartphones, wearables and PCs, our two companies will be uniquely positioned to push the boundaries of choice and value, and bring exciting new experiences to people everywhere."
Many love Motorola's smartphones due to the fact they boast near-stock Android. Osterloh mentioned in his blog post that he doesn't think Motorola's strategy of using stock Android will change under Lenovo's direction.
The deal gives Lenovo a new weapon in its battle for market share dominance against Xiaomi, which overtook Lenovo in smartphone sales in the third quarter. Despite this, Lenovo boosted its global smartphone shipments by 38 percent in the third quarter to a total of 16.9 million units.
Google will maintain control over much of Motorola's patent portfolio, with Motorola having a license to this portfolio and other intellectual property.
