Google will own 6% of China's Lenovo once Motorola deal closes
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.
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.
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.
Comments
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.
It's safe to say that Yahoo will do far better with its Alibaba stake.
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.
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.
Not seeing anywhere near one yet, except that she wants to be a Google-wannabe....
The Communist regime?
Quote:
Irrelevant. Lenovo is effectively controlled by Legend Holdings, which is effectively controlled by ... you can guess.
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.
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/
Why do you believe Yahoo isn't very interested in mining data from user activities?
That's not what he said. Read it again.
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.
You didn't understand the point I made then. Read it again.
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"?
Yes, I probably should have used "as" instead of "very".
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....
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.
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?