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Friday, 07 February 2014 09:06

Google buys a slice of Lenovo

Written by Fudzilla staff



$750mn for 5.94% stake?

Google’s sale of Motorola Mobility came as a surprise to many and Google appears to be full of surprises these days.

Thanks to a regulatory disclosure filed with the Hong Kong stock exchange, we now know that Google used the opportunity to quietly buy a small but nonetheless significant slice of Lenovo. On January 30 Google acquired 618.3 million Lenovo shares for $750 million. This gives the software giant a 5.94 percent stake in one of the most vibrant PC makers on the planet. Apart from that not much is known about the deal.

Lenovo is on a roll. It is bucking the industry trend in the PC space to a large extent and it is going from strength to strength in mobile. For the time being Lenovo’s smartphone efforts have been confined to Asian markets, but nonetheless its gains are impressive.

We wonder what Samsung has to say about Google’s decision. In the long run, Lenovo might prove to be a formidable competitor and in Asia it seems to be a bigger threat to Samsung than its arch rival Apple.

Fudzilla staff

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