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Google will own 6% of China's Lenovo once Motorola deal closes

post #1 of 24
Thread Starter 
As part of the $3 billion transaction that will see ownership of handset maker Motorola passed from Google to Lenovo, the Silicon Valley search giant is set to receive stock representing a six percent stake in the Chinese PC manufacturer.

Lenovorola


Lenovo anticipates a transfer of more than 618 million shares at a price of $1.21 each, according to a financial disclosure filed Thursday with the Hong Kong Stock Exchange and reported by Reuters. The stake -- worth $750 million -- is the third leg of the company's purchase agreement alongside $660 million in cash and a $1.5 billion, three-year promissory note.

Google and Lenovo announced the sale last week, less than two years after Google acquired Motorola for $12.5 billion.

That acquisition was mostly about Motorola's vast intellectual property portfolio rather than its hardware businesses, the latter of which Google has successfully rid itself of. Google sold Motorola's set-top box business soon after the original acquisition, and the Lenovo deal leaves Mountain View, Calif.-based Google with the lion's share of Motorola's patents as well as its secretive Advanced Research and Projects division.
post #2 of 24
Uhhh guys this story was disproven. http://recode.net/2014/02/06/no-google-didnt-just-buy-750-million-in-lenovo-shares/
post #3 of 24
Voting or non voting stocks? If they are voting stocks this is a huge deal. Basically meaning that Google is one of the biggest decision makers in Microsoft's biggest pc oem.
post #4 of 24
There are multiple interpretations of this. Just a heads up. http://recode.net/2014/02/06/no-google-didnt-just-buy-750-million-in-lenovo-shares/
post #5 of 24
Quote:
Originally Posted by danv2 View Post

Uhhh guys this story was disproven. http://recode.net/2014/02/06/no-google-didnt-just-buy-750-million-in-lenovo-shares/

Did you even read the article? It doesn't say they purchased the stock, only that they will own it once the deal is complete, which is exactly the same thing Ina Fried said in her piece.

post #6 of 24

It's safe to say that Yahoo will do far better with its Alibaba stake.

post #7 of 24
Quote:
Originally Posted by anantksundaram View Post
 

It's safe to say that Yahoo will do far better with its Alibaba stake.

And Marissa Mayer should thank Jerry Yang for that. Without Alibaba, $YHOO wouldn't look so good. It's buying her time to develop her vision.

post #8 of 24
Quote:
Originally Posted by Peterbob View Post

Voting or non voting stocks? If they are voting stocks this is a huge deal. Basically meaning that Google is one of the biggest decision makers in Microsoft's biggest pc oem.

Irrelevant. Lenovo is effectively controlled by Legend Holdings, which is effectively controlled by ... you can guess.

post #9 of 24
Quote:
Originally Posted by StruckPaper View Post
 
It's buying her time to develop her vision.

Not seeing anywhere near one yet, except that she wants to be a Google-wannabe....

post #10 of 24

The Communist regime?  

 

Quote:

Originally Posted by StruckPaper View Post
 

Irrelevant. Lenovo is effectively controlled by Legend Holdings, which is effectively controlled by ... you can guess.

post #11 of 24
Quote:
Originally Posted by anantksundaram View Post
 

Not seeing anywhere near one yet, except that she wants to be a Google-wannabe....

There is Google influence, to be sure. Them are her roots. And not a bad model if she pulls it off. Having said that, Yahoo appears to be more interested about mining data from content and creating content, rather than mining data from user activities. I think that's an important strategic divergence.

post #12 of 24
Quote:
Originally Posted by StruckPaper View Post

There is Google influence, to be sure. Them are her roots. And not a bad model if she pulls it off. Having said that, Yahoo appears to be more interested about mining data from content and creating content, rather than mining data from user activities. I think that's an important strategic divergence.

Why do you believe Yahoo isn't very interested in mining data from user activities? That's what they use to deliver targeted ads, their principle source of income. Have you read their privacy policy?
http://info.yahoo.com/privacy/ca/yahoo/
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post #13 of 24
Tohuwabohu!!!
post #14 of 24
Quote:
Originally Posted by Gatorguy View Post

Why do you believe Yahoo isn't very interested in mining data from user activities? 

That's not what he said. Read it again.

post #15 of 24
Quote:
Originally Posted by StruckPaper View Post
 

And Marissa Mayer should thank Jerry Yang for that. Without Alibaba, $YHOO wouldn't look so good. It's buying her time to develop her vision.

 

She has a vision? I haven't seen much change in Yahoo! over the last couple of years. God only knows why YHOO more than doubled during her tenure.

post #16 of 24
Quote:
Originally Posted by anantksundaram View Post

That's not what he said. Read it again.

You didn't understand the point I made then. Read it again.
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post #17 of 24
Quote:
Originally Posted by Gatorguy View Post

You didn't understand the point I made then. Read it again.

I did. A couple of times. I guess you meant to say "...at least as equally interested..." instead of "very"?

post #18 of 24
Quote:
Originally Posted by anantksundaram View Post

I did. A couple of times. I guess you meant to say "...at least as equally interested..." instead of "very"?

Yes, I probably should have used "as" instead of "very".
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post #19 of 24

Huh. If my math is right, $750 mil is 6% of $12.5B. But Yahoo finance says that Lenovo group has a market cap of $87.6B.

 

Maybe in Hong Kong dollars? 

 

In any case, unless I recall incorrectly, GOOG spent $12+ B in cash for MM, and are selling now (less patents, apparently, which so far have been fairly worthless in court) for $660M in cash, plus an IOU, plus stock.

 

And the market looooooved it!

 

I just dunno....

post #20 of 24
Quote:
Originally Posted by marubeni View Post
 

 

She has a vision? I haven't seen much change in Yahoo! over the last couple of years. God only knows why YHOO more than doubled during her tenure.

God is not the only who knows. YHOO's rise has to do with Alibaba (try reading this page).

 

Just because you can't see a vision doesn't mean it's not obvious.

post #21 of 24
Quote:
Originally Posted by StruckPaper View Post
 

God is not the only who knows. YHOO's rise has to do with Alibaba (try reading this page).

 

Just because you can't see a vision doesn't mean it's not obvious.

 

1. Which page?

 

2. Alibaba was always there, and Marissa had absolutely nothing to do with it. Or do you think Marissa is Jerry Yang in drag?

post #22 of 24
Quote:
Originally Posted by pdq2 View Post
 

Huh. If my math is right, $750 mil is 6% of $12.5B. But Yahoo finance says that Lenovo group has a market cap of $87.6B.

 

Maybe in Hong Kong dollars? 

 

In any case, unless I recall incorrectly, GOOG spent $12+ B in cash for MM, and are selling now (less patents, apparently, which so far have been fairly worthless in court) for $660M in cash, plus an IOU, plus stock.

 

And the market looooooved it!

 

I just dunno....

Yes, the market cap of $87B is a figure in HKD.

 

The market didn't love it. It was a small bump. Barely a like.

post #23 of 24
Quote:
Originally Posted by marubeni View Post
 

 

1. Which page?

 

This page.

Quote:
Originally Posted by marubeni View Post
 

2. Alibaba was always there, and Marissa had absolutely nothing to do with it. Or do you think Marissa is Jerry Yang in drag?

 

You're kidding me. If you buy a stock in 2008, can it not go up steadily during 2012 and 2013? And, as that stock goes up, does your net worth also go up? If you bother to acquaint yourself with knowledge before shooting your mouth off, you might know that Yahoo makes it a point to report not only their earnings but also those of Alibaba. Furthermore, they also report estimated valuations of Alibaba as well.

 

And if you were sharp (pretty clear whether you're or not), you'd have noticed that $YHOO slid in Jan when valuation of Alibaba was reduced.


Edited by StruckPaper - 2/9/14 at 1:56pm
post #24 of 24
Quote:
Originally Posted by StruckPaper View Post
 

This page.

You're kidding me. If you buy a stock in 2008, can it not go up steadily during 2012 and 2013? And, as that stock goes up, does your net worth also go up?

 

Yes, it can, but the discussion was about Marissa's vision. Alibaba tells us absolutely nothing about this. Yahoo! has had the Alibaba stake forever, and the Yahoo! stock was tanking because Yahoo!'s core market (the US) was doing poorly. Fast forward a couple of years, and nothing has changed, except that the Yahoo stock has more than doubled. Some of the price rise was just market beta (the market is up 30% in the last year), but YHOO! outperformed quite robustly, so I stand by my original statement.

 

I am glad third graders like yourself are paying attention to the high tech industry, but you might consider some mode of discourse other than insulting people who (most likely) know a lot more than you.

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