Google buyout rumor sends LG stock soaring

Google buyout rumor sends LG stock soaring
Here's a crazy story - this morning in Korea, the electronics giant LG was forced to officially deny rumors that Google will be investing north of $2 billion in the conglomerate. Wait, what, there has been a rumor about Google buying a majority stake in LG, sending the G4 maker's stock 14% higher?

Apparently so, but LG has evidently denied the speculation now. According to the rumor, Google is ready to obtain a 35% stake in LG to the tune of 2.5 trillion won ($ 2.2 billion), which would have made it the largest shareholder, though the block purchase wouldn't guarantee it management participation, too. 

What synergies could Google have from being an LG stakeholder, is anyone's guess, despite that LG has made Nexus gear before. Google, after all, tried its phone-making luck with Motorola, but quickly divested of its purchase. LG is, of course, not Motorola, and it is making TVs as well as phones and tablets, but still the whole rumor can raise an analyst's eyebrow or two.

source: KoreaHerald

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26 Comments

1. mistercarter

Posts: 360; Member since: Sep 01, 2011

that would definitely be a smarter move than buying Motorola, LG produces anything in electronics and Google could join forces to be another Apple/Microsoft, controlling software and hardware

3. hemedans

Posts: 755; Member since: Jun 01, 2013

Lol google can't buy whole LG, they are of same size or LG is bigger. Google can by part of it or merge and not acquisition or take over

4. Finalflash

Posts: 4063; Member since: Jul 23, 2013

They wouldn't buy LG anyway due to the fact that they have no interest in hardware business as shown through the Moto purchase. This is just a ridiculous rumor and nothing else.

10. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

Let's see... Google Market Cap: 454.000 million dollars. LG Market Cap: 7.860.000 million South Korean Wons (6.820 million dollars). "LG of the same size or bigger", yeah, right? Google is "just" 60 times bigger. Please, it's not that difficult to search for this kind of information before posting...

13. smallworld

Posts: 517; Member since: Jul 13, 2012

LG may not have a huge market cap but it's a BIG company with more employees than Google. If Google tried to buy LG it ould result in a mess. Anyway has a western company ever entirely bought an asian corporation? They're too tied to their banks and government especially cheabols and keiretsu (not to mention it's nearly impossible for a western company to buy a chinese company).

14. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

I'm never saying that Google will or even should buy them. Just that in terms of size Google actually could do it. hemedans said that LG was bigger than Google, and that Google couldn't buy them. Both statements are ridiculous.

23. Niva.

Posts: 440; Member since: Jan 05, 2015

Market cap is a funny way of judging "big companies". Yeah, Apple is the biggest company of all. I find that really odd. I do think LG is a more diverse and powerful company than Motorola, but I never understood why Google dumped Moto so quickly.

24. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

Market cap is the way the market values a company, in other words, how much it is valued due to several factors: IP, assests, revenue, margins, etc. If you know a better way to measure a compay just say it. Never tell people how things should NOT be done (destructive criticism), just tell them the better way to do it (constructive).

25. Johnnokia

Posts: 1158; Member since: May 27, 2012

Your information is false. LG corporation 2014 revenue was $162 billion, which makes its market cap $6.82 billion incredibly imposssible. This is almost a market cap of small companies like BlackBerry (currently). LG might be a little bit smaller than Google, but it is impossible to be as small as you said.

26. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

You are right, and you are not. I was only referring to LG electronics which provides the most revenue for LG.http://finance.yahoo.com/ Check there for "LG Electronic" and you´ll see I´m right. If you had read the article you may had notice this: "Google is ready to obtain a 35% stake in LG to the tune of 2.5 trillion won ($ 2.2 billion)" which by the way matches exactly with my calculation of the total value. In other words: Google would not be buying LG Corp. (the revenue you use is from ALL the LG businness) but "just" LG Electronic. Of course to notice that you need to first read the article X(

2. Kruze

Posts: 1285; Member since: Dec 30, 2014

LG A Google Company Doesn't sound right.

5. fyahking

Posts: 1146; Member since: Jan 28, 2015

LG= Life is Google!

11. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

I actually liked it!

19. Cheezwiz

Posts: 500; Member since: Dec 29, 2014

"Live Google" They'd have LG's entire line of home electronics and appliances. The IoT (Internet of things) would be Google's for the taking.

22. buccob

Posts: 2968; Member since: Jun 19, 2012

LG: Life is Goo....gle

8. eviatar

Posts: 18; Member since: Jul 20, 2015

Replace the htp to http

9. Zomer

Posts: 361; Member since: May 31, 2013

Bulls**t.

15. mixedfish

Posts: 1554; Member since: Nov 17, 2013

Google is really lost with what to do with its fortune.

17. kevin91202

Posts: 642; Member since: Jun 08, 2014

nonsense

20. corporateJP

Posts: 2458; Member since: Nov 28, 2009

This was good for a laugh today.

21. eman99

Posts: 409; Member since: Aug 03, 2010

lg and moto would get all the latest updates good move

* Some comments have been hidden, because they don't meet the discussions rules.

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