Check this out. I read an article last week, I think, that described a deal in the works with the Chinese Co. Lenovo and Google. The deal would have Google selling off its Motorola handset division for a cool $2.91 billion(here) only 2 years after Google purchased Motorola Mobility for $13 billion (here). Now, Reuters is reporting that Google purchased an almost 6% stake in Lenovo a month ago for $750 million (here). WTF is up with that? Some suggest insider trading? I say we ask Jim, since he is an accountant! This smells like some kind of gimmick like Enron might run! Picaboo Accounting tricks as Max Keiser calls it! Shell games! I call Bullshit!
The trade made sense to me. Google wants to stay focused on what it does best, enabling devices, not manufacturing them, and they bought a stake in a company that manufactures devices they make better by enabling them. Google will have a lot more say at Lenovo than it would at Samsung.
Lenovo did well with the Thinkpad brand, turning around what was once the best and then the most expensive and making it the best again. Motorola Mobility is in a similar position. At least Google and Lenovo seem to think so.
I fail to see any impropriety.
Smells like a payoff to me… probably to keep China off Google’s ass. China is a big market and worth the “investment.”
Lenovo to Acquire Motorola Mobility from Google
http://investor.google.com/releases/2014/0129.html
Research Triangle Park, North Carolina, and Mountain View, California – January 29, 2014: Lenovo (HKSE: 992) (ADR: LNVGY) and Google (NASDAQ: GOOG) today have entered into a definitive agreement under which Lenovo plans to acquire the Motorola Mobility smartphone business. With a strong PC business and a fast-growing smartphone business, this agreement will significantly strengthen Lenovo’s position in the smartphone market. In addition, Lenovo will gain a strong market presence in North America and Latin America, as well as a foothold in Western Europe, to complement its strong, fast-growing smartphone business in emerging markets around the world.
The purchase price is approximately US$2.91 billion (subject to certain adjustments), including US$1.41 billion paid at close, comprised of US$660 million in cash and US$750 million in Lenovo ordinary shares (subject to a share cap/floor). The remaining US$1.5 billion will be paid in the form of a three-year promissory note.
Lenovo, which in 2005 acquired IBM’s PC business and its legendary PC brand, will now acquire world-renowned Motorola Mobility, including the MOTOROLA brand and Motorola Mobility’s portfolio of innovative smartphones like the Moto X and Moto G and the DROID™ Ultra series. In addition to current products, Lenovo will take ownership of the future Motorola Mobility product roadmap.
Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.
Good lord, how many stupid smart phones [phone with a web browser] do the zombies need?
Nonanonymous
You are joking right?
Is not the best by a long shot. It just lowering manufactoring costs. Granted, the keyboard layout change is _somewhat_ acceptable, but removing physical mouse buttons, status lights, and thinklight DOES NOT MAKE IT BETTER, BUT WORSE.