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Lenovo’s CEO Yang Yuanq- ing announced the latest reorganization on his microblog， saying the company’s China region will now be divided into two groups — one focused on personal computers and smart devices， and the other on data centers.
“At the moment， the PC industry is transforming from traditional computers to ‘new’ PCs， and the China market for a new generation of smart devices is developing quickly，” Yang said in his post.
“In order to seize on opportunities created by this massive change， we need to make an equally massive change to our business model and organization.” Under the reorganization， former Lenovo executive Liu Jun will return to the company to head the company’s personal computing and smart device group for China， Yang said. Another executive， Tong Fuyao， will head the data center group for the China region， he added. Lenovo’s shares closed up 0.8% in that day in Hong Kong. But they have lost more than half their value over the last two years， as the company’s plans to transform its success in PCs to the smart phone sector have yielded mostly disappointing results. The company’s profit fell by two-thirds in its latest reporting quarter， as its smart phone sales plunged 26%. Adding to its woes， Lenovo also lost its longtime crown as the world’s largest PC maker to HP Inc. in the first quarter of this year. Yang has made a number of major moves to try and right his ship， including a management reshuffle late last year that saw the company change three of its top managers.
Acquisition of Motorola Mobility from Google
October 30， 2014， Lenovo and Google announced that Lenovo’s acquisition of Motorola Mobility from Google is complete.
The acquisition of the Motorola brand and Motorola’s portfolio of innovative smart phones like Moto X， Moto G， Moto E and the DROIDTM series， as well as the future Motorola product roadmap， positions Lenovo as the world’s third largest maker of smart phones.
Lenovo will operate Motorola as a wholly-owned subsidiary. Motorola’s headquarters will remain in Chicago. With the completion of the acquisition， Lenovo welcomes the addition of a new portfolio company with nearly 3，500 employees around the world – including about 2，800 in the U.S. – who design， engineer， sell and support Motorola’s outstanding devices.
“Today we achieved a historic milestone for Lenovo and for Motorola– and together we are ready to compete， grow and win in the global smart phone market. By building a strong number three and a credible challenger to the top two in smart phones， we will give the market something it has needed： choice， competition and a new spark of innovation，” said Yang Yuanqing， chairman and CEO， Lenovo. “This partnership has always been a perfect fit. Lenovo has a clear strategy， great global scale， and proven operational excellence. 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 is in great hands with Lenovo， a company that’s all-in on making great devices，” said Larry Page， CEO， Google.
Liu Jun， Lenovo executive vice president and president of Lenovo’s Mobile Business Group， is chairman of the Motorola Management Board. Rick Osterloh， a Motorola veteran， will remain president and chief operating officer of Motorola.
Motorola already has strong momentum in the marketplace led by highly successful new product launches and groundbreaking innovations， which have provided solid growth. Beyond smart phones， the Moto 360 watch has captured consumer attention and established Motorola as a company expanding into emerging mobile device areas.
Google will maintain ownership of a majority of the Motorola Mobility patent portfolio， while Motorola will receive a license to this rich portfolio of patents and other intellectual property. Motorola will retain over 2，000 patent assets and a large number of patent cross-license agreements， as well as the Motorola Mobility brand and trademark portfolio.
The transaction has satisfied all regulatory requirements and customary closing conditions， including clearance by competition authorities in the U.S.， China， EU， Brazil and Mexico， and by the Committee on Foreign Investment in the United States （CFIUS）. This is the fifth time since 2005 Lenovo has been cleared by CFIUS to acquire a U.S. business.
Management Reshuffle
Last year， Motorola President Rick Osterloh left Lenovo amid a broad reorganization that will see the company shuffle around various business units and executives.
As part of the reorganization， Lenovo is also expanding its PC unit to include all tablets， phablets and smart home products running Windows， Chrome OS and Android. The newly renamed PC & Smart Device Business Unit will be led by former Acer executive Gianfranco Lanci， who serves as Lenovo’s president and chief operating officer. Lanci will continue to oversee the company’s geographic sales and operations units. The remaining parts of the mobile business unit will report to Xudong Chen and Aymar de Lencquesaing， who will serve as co-presidents， both reporting to Lenovo CEO Yang Yuanqing.
Osterloh has led the Motorola team through 2015 acquisition following the departure of Dennis Woodside ， who is now chief operating officer at Dropbox.
Lenovo said the Motorola team will report to de Lencquesaing， offering a terse note of thanks to Osterloh while praising the broader Motorola team.
“His steady leadership since Lenovo’s acquisition is appreciated and Lenovo wishes him continued success in the future，” Lenovo said of Osterloh. “The talent and innovation capabilities in Motorola are among Lenovo’s strongest advantages in mobile， so the Motorola teams will continue to enable the entire（mobile business group）， including in China.”
Lenovo announced plans to deemphasize the Motorola brand ， using Moto as more of a product line （i.e. Lenovo Moto X and Lenovo Moto G， etc.） The company has also seen its overall phone market share dip amid weakness in China.
“If you excluded China， our unit numbers would look like they are growing.” Osterloh said at Mobile World Congress.
“At the moment， the PC industry is transforming from traditional computers to ‘new’ PCs， and the China market for a new generation of smart devices is developing quickly，” Yang said in his post.
“In order to seize on opportunities created by this massive change， we need to make an equally massive change to our business model and organization.” Under the reorganization， former Lenovo executive Liu Jun will return to the company to head the company’s personal computing and smart device group for China， Yang said. Another executive， Tong Fuyao， will head the data center group for the China region， he added. Lenovo’s shares closed up 0.8% in that day in Hong Kong. But they have lost more than half their value over the last two years， as the company’s plans to transform its success in PCs to the smart phone sector have yielded mostly disappointing results. The company’s profit fell by two-thirds in its latest reporting quarter， as its smart phone sales plunged 26%. Adding to its woes， Lenovo also lost its longtime crown as the world’s largest PC maker to HP Inc. in the first quarter of this year. Yang has made a number of major moves to try and right his ship， including a management reshuffle late last year that saw the company change three of its top managers.
Acquisition of Motorola Mobility from Google
October 30， 2014， Lenovo and Google announced that Lenovo’s acquisition of Motorola Mobility from Google is complete.
The acquisition of the Motorola brand and Motorola’s portfolio of innovative smart phones like Moto X， Moto G， Moto E and the DROIDTM series， as well as the future Motorola product roadmap， positions Lenovo as the world’s third largest maker of smart phones.
Lenovo will operate Motorola as a wholly-owned subsidiary. Motorola’s headquarters will remain in Chicago. With the completion of the acquisition， Lenovo welcomes the addition of a new portfolio company with nearly 3，500 employees around the world – including about 2，800 in the U.S. – who design， engineer， sell and support Motorola’s outstanding devices.
“Today we achieved a historic milestone for Lenovo and for Motorola– and together we are ready to compete， grow and win in the global smart phone market. By building a strong number three and a credible challenger to the top two in smart phones， we will give the market something it has needed： choice， competition and a new spark of innovation，” said Yang Yuanqing， chairman and CEO， Lenovo. “This partnership has always been a perfect fit. Lenovo has a clear strategy， great global scale， and proven operational excellence. 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 is in great hands with Lenovo， a company that’s all-in on making great devices，” said Larry Page， CEO， Google.
Liu Jun， Lenovo executive vice president and president of Lenovo’s Mobile Business Group， is chairman of the Motorola Management Board. Rick Osterloh， a Motorola veteran， will remain president and chief operating officer of Motorola.
Motorola already has strong momentum in the marketplace led by highly successful new product launches and groundbreaking innovations， which have provided solid growth. Beyond smart phones， the Moto 360 watch has captured consumer attention and established Motorola as a company expanding into emerging mobile device areas.
Google will maintain ownership of a majority of the Motorola Mobility patent portfolio， while Motorola will receive a license to this rich portfolio of patents and other intellectual property. Motorola will retain over 2，000 patent assets and a large number of patent cross-license agreements， as well as the Motorola Mobility brand and trademark portfolio.
The transaction has satisfied all regulatory requirements and customary closing conditions， including clearance by competition authorities in the U.S.， China， EU， Brazil and Mexico， and by the Committee on Foreign Investment in the United States （CFIUS）. This is the fifth time since 2005 Lenovo has been cleared by CFIUS to acquire a U.S. business.
Management Reshuffle
Last year， Motorola President Rick Osterloh left Lenovo amid a broad reorganization that will see the company shuffle around various business units and executives.
As part of the reorganization， Lenovo is also expanding its PC unit to include all tablets， phablets and smart home products running Windows， Chrome OS and Android. The newly renamed PC & Smart Device Business Unit will be led by former Acer executive Gianfranco Lanci， who serves as Lenovo’s president and chief operating officer. Lanci will continue to oversee the company’s geographic sales and operations units. The remaining parts of the mobile business unit will report to Xudong Chen and Aymar de Lencquesaing， who will serve as co-presidents， both reporting to Lenovo CEO Yang Yuanqing.
Osterloh has led the Motorola team through 2015 acquisition following the departure of Dennis Woodside ， who is now chief operating officer at Dropbox.
Lenovo said the Motorola team will report to de Lencquesaing， offering a terse note of thanks to Osterloh while praising the broader Motorola team.
“His steady leadership since Lenovo’s acquisition is appreciated and Lenovo wishes him continued success in the future，” Lenovo said of Osterloh. “The talent and innovation capabilities in Motorola are among Lenovo’s strongest advantages in mobile， so the Motorola teams will continue to enable the entire（mobile business group）， including in China.”
Lenovo announced plans to deemphasize the Motorola brand ， using Moto as more of a product line （i.e. Lenovo Moto X and Lenovo Moto G， etc.） The company has also seen its overall phone market share dip amid weakness in China.
“If you excluded China， our unit numbers would look like they are growing.” Osterloh said at Mobile World Congress.