Lenovo hopes to become a strong #3 competitor in the global smartphone market

It was announced earlier this year that Lenovo would purchase Motorola from Google for a relative bargain at $2.91 billion. Lenovo today completed its acquisition of Motorola, adding roughly 3,500 employees to its headcount including 2,800 in the U.S.
“Lenovo has a clear strategy, great global scale, and proven operational excellence,” said Lenovo chairman and CEO Yang Yuanqing.  “Motorola brings a strong presence in the U.S. and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team.  This is a winning combination.”

Motorola Moto 360
Lenovo has already made its mark on the PC market, and has pushed and shoved its way to the top of the global charts (with a 20 percent share, putting it ahead of HP). The company is hoping to copy its success in PCs with the strength of its existing Lenovo-branded smartphones along with the “new blood” from Motorola.
In fact, Lenovo thinks Motorola will help the company take a comfortable third-place spot in the global smartphone market behind first place Samsung and second place Apple.

 Motorola Droid Turbo
“By building a strong number three 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,” added Yang Yuanqing.
The $2.91 billion price tag consisted of $660 million in cash, over 519 million shares in Lenovo stock (roughly $750 million), and a $1.5 billion promissory note. Lenovo hopes to make Motorola profitable within four to six quarters.

Source: Lenovo

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