Sunday, March 1, 2015   

Google offloads Motorola to Lenovo for US$2.91b
(01-30 13:24)

Google has agreed to sell Motorola to Chinese technology giant Lenovo for US$2.91 billion, after a lackluster two-year effort to turn around the smartphone maker it bought for US$12.5 billion.
The deal ends Google's run as a handset maker after it biggest-ever takeover, which was announced in 2011 and finalized in 2012, AFP reports/
It also provides Lenovo footholds in smartphone and tablet markets where it is eager to gain traction while acting as a peace offering to Samsung and other partners that make devices powered by Google-backed Android software.
"It is win-win,'' said analyst Tim Bajarin of Creative Strategies in Silicon Valley. "Google keeps the patents and the research group, and they keep partners off their back, while Lenovo gets what they need to get into the US smartphone market.''
The deal comes just a week after Lenovo said it will buy IBM's low-end server business for US$2.3 billion, giving it a platform to compete in that sector with US giants Dell and Hewlett-Packard.
However, Lenovo's Hong Kong-listed shares dived 8.21 percent to HK$10.06 on Thursday as investors were spooked about Motorola's profitability.
Even under Google, Motorola failed to gain traction in a rapidly evolving smartphone market now dominated by South Korea's Samsung and US-based Apple.
Google and Lenovo claimed the deal was good for everyone involved.
"Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem,'' Google chief executive Larry Page said in a statement.
Lenovo chairman and chief executive Yang Yuanqing said the acquisition ''will immediately make Lenovo a strong global competitor in smartphones. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space.''
The Chinese firm was the fifth-largest smartphone maker in the fourth quarter, with a 4.5 percent market share, barely behind fellow Chinese maker Huawei and South Korea's LG, according to a report by research firm IDC.
   
Other Business breaking news:
German MPs okay Greek bailout extension by big majority (02-27 18:45)
Hang Seng retreats, Shanghai gains (02-27 17:33)
Iberia and BA owner IAG posts profit, cites costs savings (02-27 17:28)
Airbus reports 2.3b euros earnings, predicts more orders (02-27 17:22)
Lloyds reports profits, announces first dividend since bailout (02-27 16:30)
Europe equities steady (02-27 16:19)
Novartis Japan hit with suspension over side-effect reporting (02-27 14:50)
Nikkei reaches new 15-year high (02-27 14:35)
Chinese got 6,985 US investor visas n 2013 (02-27 13:49)
Chinese billions in US open avenues for investment fraud (02-27 13:37)

More breaking news >>

© 2015 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts

 


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2015, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.