Google buys 5.94% stake in Lenovo

Feb 07, 2014
A man walks past an advertising billboard for Chinese technology giant Lenovo in Hong Kong on February 4, 2014

Google bought a 5.94 percent stake in Lenovo for $750 million on the same day it agreed to sell handset maker Motorola to the Chinese technology giant, a report said Friday.

The US Internet firm acquired 618.3 million shares in the PC maker at $1.213 each when Lenovo bought Motorola for $2.91 billion last Thursday, according to Dow Jones Newswires.

The deal provides Lenovo with footholds in smartphone and tablet markets where it is eager to gain traction.

It also came just a week after the Chinese firm said it will buy IBM's low-end server business for $2.3 billion, giving it a platform to compete in that sector with US giants Dell and Hewlett-Packard.

However, Lenovo's Hong Kong-listed shares lost almost a quarter of their value in two days after the Motorola news, with traders worried the technology giant had bitten off more than it could chew by buying the unprofitable handset maker.

A Google sign on the exterior of the company's headquarters in Mountain View, California on January 30, 2014

The firm closed 1.32 percent higher at HK$8.42 ($1.09) on Friday.

Explore further: Samsung removes logo on smartphones in Japan

Related Stories

Lenovo signals 'global ambitions' with Motorola deal

Feb 02, 2014

In 1984, with only $25,000 in Chinese government funding and a dusty 20-square-metre bungalow as their headquarters, a small group of scientists in Beijing founded a firm called New Technology Developer Inc.

Recommended for you

Taiwan factory workers win $18 mn over cancer deaths

Apr 17, 2015

Workers from a factory in Taiwan which leeched toxic chemicals they say resulted in 200 deaths from cancer and more than 1,000 other cases of the disease won a Tw$564.45 million ($18 million) payout from US electronics company ...

Court monitor: Apple antitrust cooperation has 'declined'

Apr 17, 2015

Apple Inc.'s cooperation with efforts to improve its compliance with antitrust laws after a federal judge concluded it colluded with electronic book publishers to raise prices five years ago took on an "adversarial tone" ...

SEC questions LA Unified on use of bonds for iPad project

Apr 17, 2015

The Securities and Exchange Commission recently questioned Los Angeles Unified School District officials as part of informal inquiry into whether they properly used bond funds for a beleaguered $1.3 billion project to provide ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.