Lenovo is going to have to "seriously up its game" to succeed in the smartphone market, said Daher. "I've seen plenty of companies spend a lot of money only to fail," he said. "HP and Dell tried to crack into the mobile market and fell flat on their faces. Lenovo has a leg up on HP and Dell because it not only buys Motorola from Google but also that Google relationship. Lenovo just put a huge target on its back. Samsung, Apple, Dell and HP are going to do whatever they can to compete with Lenovo now."
Robby Hill, president and CEO of HillSouth, a Florence, S.C.-based solution provider and Lenovo partner, said the deal makes Lenovo a powerhouse on par with top-tier end-to-end computing giants like Hewlett-Packard. "They are now playing on the levels of the HPs and the Dells because they have rounded out their line card," said Hill. "That's really important because your business customers like to see well-rounded companies that aren't dependent on one sector of the industry for other revenues and innovation."
Lenovo's muscle behind an already strong Motorola Mobility product line "should open up some synergistic possibilities [for the channel] where we could really blend together innovative features with the hardware and the software," said Hill.
The Lenovo purchase price includes $1.41 billion paid at the close of the deal, comprised of $660 million in cash and $750 million in Lenovo ordinary shares. The remaining $1.5 billion will be paid in the form of a three-year promissory note.
Google, which bought Motorola Mobility for a whopping $12.5 billion in May 2012, said it will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio
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