Google could own 6% stake in Lenovo as part of Motorola deal
posted by Michael H. / Feb 06, 2014, 11:40 PM
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.
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posted on Feb 06, 2014, 11:53 PM 0
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posted on Feb 06, 2014, 11:54 PM 0
Posts: 723; Member since: Apr 19, 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 Feb 07, 2014, 12:07 AM 0
Posts: 749; Member since: Dec 14, 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 Feb 07, 2014, 1:56 AM 0
Posts: 1442; Member since: Nov 19, 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 Feb 07, 2014, 3:13 AM 0
Posts: 942; Member since: Feb 02, 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 Feb 07, 2014, 4:00 AM 1
Posts: 20; Member since: Nov 15, 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.
posted on Feb 07, 2014, 8:41 AM 0
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