Friday, 7 February 2014

Google to own $750 million Lenovo stake after Motorola deal closes: HK exchange - Reuters

HONG KONG Fri Feb 7, 2014 4:18am EST

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The Google signage is seen at the company's offices in New York January 8, 2013.

Credit: Reuters/Andrew Kelly

HONG KONG (Reuters) - Internet search company Google Inc will own a 5.94 percent stake in China's Lenovo Group Ltd worth $750 million once Lenovo's deal to buy Google's Motorola handset division closes, according to a disclosure on the Hong Kong stock exchange.

Google would take 618.3 million Lenovo shares at $1.213 per share, the stock exchange said late on Thursday.

Lenovo agreed to buy Google's Motorola handset division last week for $2.91 billion in a cash and stock deal.

(This version of the story clarifies that Google will only own Lenovo stake once Motorola deal is completed)

(Reporting by Donny Kwok; Editing by Anne Marie Roantree)

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Comments (2)

Google folks are pretty smart… I wonder if they know something that we don't? Why buy a share of a company whose main products (computers) are on a long term decline?

Feb 06, 2014 10:55pm EST -- Report as abuse

Google had just sold their hand phone division (motorola). So if they plan to have something to do with hardware, then it make sense to go with Lenovo, as Samsung are not too friendly now. Plus, Levono is going to have server division from IBM soon. Instead of partner like Samsung, why not have a stake in your partner company, so that they wont turn and stab your back.
And it could be a stepping stone for Google to go back to China market.

Feb 07, 2014 4:27am EST -- Report as abuse

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