Lenovo Group announced yesterday that it has agreed to buy Google's Motorola handset division for approximately $2.91 billion. It's being touted as China's largest-ever tech deal as Lenovo buys its way into a heavily competitive U.S. handset market dominated by Apple Inc. This deal comprises of $660 million in cash, $750 million in Lenovo ordinary shares, and another $1.5 billion in the form of a three-year promissory note, according to a joint statement issued by Lenovo and Google. Continue reading for a video and more information.
"Using Motorola, just as Lenovo used the IBM ThinkPad brand, to gain quick credibility and access to desirable markets and build critical mass makes a lot of sense," said Forrester Research analyst Frank Gillett.