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

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. 

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23 Comments

1. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

Goonovo x'D

23. sgodsell

Posts: 7234; Member since: Mar 16, 2013

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

2. ScottSchneider

Posts: 336; Member since: Dec 06, 2011

Probably GoLeMo...

4. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Or Goolemotonovoro...

11. Miracles

Posts: 560; Member since: Aug 31, 2013

Maybe Goomotonovo?

13. ScottSchneider

Posts: 336; Member since: Dec 06, 2011

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

3. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Goonovo? WTF?

19. LiyanaBG

Posts: 381; Member since: Nov 07, 2013

awesome name

5. Commentator

Posts: 3722; Member since: Aug 16, 2011

Motorola: a 6% Google Company

6. neops

Posts: 297; Member since: Jan 28, 2014

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

7. Commentator

Posts: 3722; Member since: Aug 16, 2011

Glemotorolanovooogle?

8. Arthurhkt

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.

9. bugsbunny00

Posts: 2262; Member since: Jun 07, 2013

goonovorola family.

10. Miracles

Posts: 560; Member since: Aug 31, 2013

That actually sounds good. :D

12. jroc74

Posts: 6023; Member since: Dec 30, 2010

The plot thickens....hmmmmm. Love it. Was already feeling better seeing the current Lenovo Android phones....this makes me feel even better.

14. a_merryman

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.

15. Aplusk

Posts: 120; Member since: Nov 10, 2013

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

16. boosook

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.

17. Edmund

Posts: 656; Member since: Jul 13, 2012

I have a better bame - GOVNO (this shouldn't take long for Victor to delete)

18. deewinc

Posts: 455; Member since: Feb 21, 2013

GooMotoNovorola making Chromebooks and tablets?

20. thealphageek1

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.

21. a_merryman

Posts: 749; Member since: Dec 14, 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.

22. Mike_L.13

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.

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