Friday, October 31, 2014   

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 retail sales post biggest drop for 7 years (10-31 17:59)
Hang Seng finishes higher (10-31 17:22)
IAG airlines group logs improving Q3 profits (10-31 17:21)
European stocks rally at open (10-31 16:47)
Panasonic says half-year profit dives (10-31 15:53)
Nikkei soars to seven-year high (10-31 15:44)
Japan Airlines H1 net profit slips (10-31 15:43)
Sony says half-year loss balloons six-fold (10-31 15:42)
RBS sets aside 400m pounds for forex probes (10-31 15:41)
BoJ chief says at 'critical moment' for exiting deflation (10-31 15:40)

More breaking news >>

© 2014 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 2014, 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.