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: Lenovo eyes takeover, with IBM server unit in focus

add to favorites email to friend print save as pdf

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

Chinese man brings gay conversion therapy lawsuit

2 hours ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

Alcatel loss narrows in 2Q but revenue stagnates

3 hours ago

(AP)—Telecommunications equipment company Alcatel-Lucent SA says its net loss narrowed in the second quarter thanks to lower accounting charges, while revenue stagnated and restructuring charges mounted.

Sony surprises with first quarter profit

8 hours ago

(AP)—Sony Corp. reported a surprise eightfold jump in quarterly profit Thursday as sales got a perk from a cheap yen and its bottom line was helped by gains from selling buildings and its stake in a video-game maker.

User comments : 0