Motorola to absorb Lenovo Mobile and merge into one company
Reports have emerged Motorola will be absorbing Lenovo Mobile and both companies are set to merge into one.
Illinois telecommunications company Motorola will take over Chinese computer tech company Lenovo with both of them merging into one company.
Under the new agreement undertaken by both entities, the Lenovo Mobile brand will be erased and all future devices will be launched under Motorola's name.
Google bought Motorola Mobility back in August 2011 for $12.5 billion when Motorola's finances were in the red. While the search engine giant made full use of Motorola patents and research projects, Motorola was able to make a profitable market comeback with its Moto G smartphone.
In January 2014, Google then sold the company to Lenovo and just as the mobile industry started referring to Motorola Mobile as a Lenovo-owned subsidiary, information surfaced of a merger, with Motorola absorbing its mother company instead.
According to Lenovo Group President Chen Xudong, the merger is more of a company re-organization, with the more popular Motorola brand maintaining its identity, Android Community writes.
A report from China's XiaomiToday states the merger has been in the pipeline for some time and has come to fruition a year after conception when both companies finally came to a consensus.
There will also be a new organizational structure implemented upon the merger, which will include Lenovo-backed company, ZUK Mobile, an Android smartphone manufacturer.
Lenovo CEO Yang Yuanqing will reportedly sit at the helm, with Motorola's new management structure leading the newly merged entity. As part of the merger agreement, Lenovo's mobile division will progressively scale down its production, with all new devices to be eventually released under the Motorola branding.
While both Motorola and Lenovo brand products will continue to be sold in the market as of the present, both companies are currently discussing long-term branding decisions for the future.
