Lenovo buying Motorola Mobility from Google Inc.

John Pletz
CRAIN'S CHICAGO BUSINESS

Published: January 30, 2014 11:53 am ET
Updated: January 30, 2014 11:59 am ET

Related to this story

Topics Electronics

That silence you heard Jan. 29 wasn't the cold snap breaking, but Chicago holding its breath when Motorola Mobility said it is being sold by Google Inc. to Chinese electronics maker Lenovo.

The sale announcement comes as Motorola is just weeks away from moving more than 2,000 workers into Chicago's Merchandise Mart and becoming the biggest tech employer in the city.

It also comes about a year after Motorola and its manufacturing partner – Flextronics International Ltd. – opened a plant in Fort Worth, Texas, to assemble Motorola's plastic bodied smartphone the Moto X.

But the Chinese electronics manufacturer says Motorola's move from north suburban Libertyville will be completed before the $2.9 billion sale is closed, and it doesn't plan to cut jobs after the deal is done. So the immediate impact on jobs and real estate is nil.

"We don't plan to lay off people," Lenovo CEO Yang Yuanqing said during a conference call after the announcement. "They have unique expertise in the smartphone area. Motorola brings a strong brand, brilliant engineering and strong relationships with carriers and retailers."

There's still a blow to the psyche. Lenovo, based in Beijing, doesn't have the cachet of Mountain View, Calif.-based Google. But Motorola and Chicago both could end up better off.

"Lenovo is not anywhere near as sexy as Google is. It's a blow to Chicago's connectivity back to Silicon Valley," said Michael Marasco, director of the Farley Center for Entrepreneurship and Innovation at Northwestern University. "But Lenovo has a history of thinking long term, and it's a global leader." And through the deal, he notes, Chicago's tech community achieves greater "connectivity into Asia, which is a bigger market."

For more about the deal and what analysts say this could mean for Motorola, check out Crain's Chicago Business, a sister publication of Plastics News at www.chicagobusiness.com.


Comments

Lenovo buying Motorola Mobility from Google Inc.

John Pletz
CRAIN'S CHICAGO BUSINESS

Published: January 30, 2014 11:53 am ET
Updated: January 30, 2014 11:59 am ET

Post Your Comments


Back to story

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events