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Google could own 6% stake in Lenovo as part of Motorola deal

Posted: , by Michael H.

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Google could own 6% stake in Lenovo as part of Motorola deal
There is a smaller bit that we seem to have overlooked a bit from last week's news that Google had decided to sell Motorola to Lenovo for $2.91 billion. It seems we should have made the caveat that while Lenovo agreed to pay $2.91 billion, Google also agreed to invest a fair amount in Lenovo as well. In fact, Google has purchased a 6% stake in the Chinese company.

Right after the announcement of Google selling Motorola came another announcement saying that Google had also agreed to purchase $750 million in Lenovo stock. That purchase went through the next day when Google purchased 618.3 million Lenovo shares at $1.213 per share. This means that Google now owns a 5.94% stake in Lenovo. 

It is unclear as yet what if any influence that will give Google in the company. There has been hope that Google has gotten some assurances as part of the deal that Lenovo would let Motorola keep going with its near-stock software, but this also could be part of another deal for something else, like making sure Lenovo doesn't make Windows Phones. We can't be sure just yet. 

*Update* It turns out that Reuters may have misread the Hong Kong regulatory filing that informed this article. According to Re/code, the filing doesn't actually say that Google purchased the stocks, yet. The filing just states the maximum amount of Lenovo stock that Google could own once the Motorola deal goes through. So, Google may buy Lenovo stock when the Motorola deal is approved, but there has been no purchase yet. 

23 Comments
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posted on 06 Feb 2014, 23:43 1

1. NokiaFTW (Posts: 1688; Member since: 24 Oct 2012)


Goonovo x'D

posted on 07 Feb 2014, 09:03

23. sgodsell (Posts: 889; Member since: 16 Mar 2013)


Since Google only has 6% stake. Shouldn't it be NovoGoo, or Novos goo. Just saying ;-)

posted on 06 Feb 2014, 23:53

2. ScottSchneider (Posts: 312; Member since: 06 Dec 2011)


Probably GoLeMo...

posted on 06 Feb 2014, 23:54

4. xperiaDROID (Posts: 5047; Member since: 08 Mar 2013)


Or Goolemotonovoro...

posted on 07 Feb 2014, 00:26

11. Miracles (Posts: 458; Member since: 31 Aug 2013)


Maybe Goomotonovo?

posted on 07 Feb 2014, 01:50 2

13. ScottSchneider (Posts: 312; Member since: 06 Dec 2011)


u missed a ''la'' at the end.... Goolemotonovorola... >_

posted on 06 Feb 2014, 23:53 1

3. xperiaDROID (Posts: 5047; Member since: 08 Mar 2013)


Goonovo? WTF?

posted on 07 Feb 2014, 03:47

19. LiyanaBG (Posts: 288; Member since: 07 Nov 2013)


awesome name

posted on 06 Feb 2014, 23:57 10

5. Commentator (Posts: 2293; Member since: 16 Aug 2011)


Motorola: a 6% Google Company

posted on 07 Feb 2014, 00:01 1

6. neops (Posts: 159; Member since: 28 Jan 2014)


Now that's a name for serious business! Or Goofnovo mabe

posted on 07 Feb 2014, 00:05

7. Commentator (Posts: 2293; Member since: 16 Aug 2011)


Glemotorolanovooogle?

posted on 07 Feb 2014, 00:07

8. Arthurhkt (Posts: 83; Member since: 19 Apr 2012)


If so, than there is a hope in my Moto G future update, since "technically" Google has 6% of share in the Lenovo/Motorola, i hope they would continue to support Motorola or Lenovo with their software side.

posted on 07 Feb 2014, 00:18

9. bugsbunny00 (Posts: 885; Member since: 07 Jun 2013)


goonovorola family.

posted on 07 Feb 2014, 00:25

10. Miracles (Posts: 458; Member since: 31 Aug 2013)


That actually sounds good. :D

posted on 07 Feb 2014, 00:59 1

12. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


The plot thickens....hmmmmm.

Love it.

Was already feeling better seeing the current Lenovo Android phones....this makes me feel even better.

posted on 07 Feb 2014, 01:56

14. a_merryman (Posts: 603; Member since: 14 Dec 2011)


I thought that they received the stock as part of the payment, that is what I read in most other stories on the deal.... They aren't purchasing them, they are taking them as part of the payment for Motorola.

posted on 07 Feb 2014, 02:14

15. Aplusk (Posts: 85; Member since: 10 Nov 2013)


could be part of another deal for something else, like making sure Lenovo doesn't make Windows Phones.

posted on 07 Feb 2014, 03:13

16. boosook (Posts: 896; Member since: 19 Nov 2012)


All right, so now the point is clear. Two years ago they bought Motorola because they wanted to rival Apple in the US. Now, they have probably discovered that China is more important and Lenovo is the way they'll use to enter the Chinese market.

posted on 07 Feb 2014, 03:18

17. Edmund (Posts: 654; Member since: 13 Jul 2012)


I have a better bame - GOVNO

(this shouldn't take long for Victor to delete)

posted on 07 Feb 2014, 03:26

18. deewinc (Posts: 155; Member since: 21 Feb 2013)


GooMotoNovorola making Chromebooks and tablets?

posted on 07 Feb 2014, 04:00 1

20. thealphageek1 (banned) (Posts: 942; Member since: 02 Feb 2013)


The site Re/Code says that this information is incorrect. It says that this report is out due to a misreading of the filing Reuters. It states that Google is set to receive $750 million worth of Lenovo shares as part of the deal to sell Motorola to Lenovo.

posted on 07 Feb 2014, 04:32

21. a_merryman (Posts: 603; Member since: 14 Dec 2011)


Exactly what I've read everywhere else when the deal was announced. The Verge wrote about how the $2.91 Billion was to be paid back when the deal was announced.

posted on 07 Feb 2014, 08:41

22. Mike_L.13 (Posts: 20; Member since: 15 Nov 2013)


"It is unclear as yet what if any influence that will give Google in the company."

They wouldn't have bought only 6% if they intended to have "significant influence" over the company. Accounting methodologies would have to change entirely if they had significant influence. The way they structured the deal, any gains/losses that Lenovo experiences Google won't have to account for on their income statement/as part of earnings.

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