Lenovo CEO Yang certain that Motorola can turn a profit
After the announcement on Wednesday that Lenovo is buying Motorola from Google for $2.91 billion, Lenovo's Chief Executive Yang Yuanqing and Chief Financial Officer Wong Wai Ming answered some questions about the acquisition. Lenovo has yet to enter the U.S. market although it earlier stated its intentions to do so. According to Yang, purchasing Motorola gives Lenovo an instant entry into the states.
The executive calls Motorola a very good brand with plenty of intellectual property and a good relationship with carriers. He adds that his company will keep both the Motorola and Lenovo brands. The latter is strong in China and in emerging markets while Motorola is strong in the U.S. and Latin America. The CEO says that Lenovo might try using the Motorola name in China. He added that the company might go with something like "Motorola by Lenovo".
source: WSJ
While Motorola was losing money under Google, Yang says that he believes that Lenovo can help Motorola turn a profit. The year after the deal closes, Lenovo expects to sell 100 million smartphones globally. As far as the deal is concerned, the executive expects no U.S. regulatory issues seeing as the handset business is a consumer business.
source: WSJ
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