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Google reportedly pays $750m for a slice of Lenovo

Following sale of Motorola Mobility to the Chinese PC maker
Fri Feb 07 2014, 13:33
Lenovo Ideapad Yoga Laptop back logo

INTERNET GIANT Google reportedly has handed over $750m for less than six percent of Chinese hardware maker Lenovo following its sale of Motorola to the firm.

Citing a filing at the Hong Kong Stock Exchange, Reuters reported that Google has invested $750m in Lenovo for 618.3 million Lenovo shares at $1.213 per share, which gives it a 5.94 percent interest in the company once the sale of Motorola has been finalised.

However, it's worth noting that Google has not confirmed the investment, and some sources such as Recode.net have said the report is simply not true.

The website rejected the rumours, saying that the Hong Kong Stock Exchange filing simply reflects the number of shares in Lenovo that Google could own once its sale of Motorola has closed.

Recode notes, "The filing, which is admittedly short on details, states a number of Lenovo shares and a price, which Reuters (and then others) decided meant that Google bought shares.

"The actual number of shares will depend on Lenovo's price at close, as well as various floors and ceilings put in place in the deal."

While some are sceptical, the deal would be a welcome cash boost for Lenovo if the report is true. The firm splashed out $3bn for Motorola at the end of January, a deal that will see it expand its presence in the smartphone market, and also recently handed over $2.3bn to acquire IBM's server business.

Neither Google nor Lenovo have responded to our request for comment yet. µ

 

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