Search engine heavyweight Google has been reported to acquire 5.94 per cent shares in Chinese computer manufacturer Lenovo having worth of around worth USD 750 million
Google have penned down a deal with Lenovo for this purpose which is estimated at 5.82 billion Hong Kong dollars.
Apart from that, Lenovo is entitled to deposit USD 660 million cash and the rest of USD 1.5 billion in a three-year installment scheme.
In January 2014, Google reported that Lenovo is going to take over Motorola for a hefty USD 2.91 billion. This release will end the tech giant’s poor show in the unpredictable and tough smartphone business.
The deal for Motorola by Lenovo is termed as the biggest Chinese technology takeover ever made. It also gives Google the bounty to keep the massive portfolio of almost 17,000 patents it grabbed when it took over the tumbling smartphone manufacturer Motorola for 12.5 billion dollars back in 2012.
Research firm IDC also suggest that Google posted a decline in its worldwide share market of almost 1 percent in 2013 from 2.3 percent back in 2012 which is in fact due to its lack of competition in the tough and ruthless phone hardware business.
Since its takeover by Google, Motorola has been operating semi-independent businesses.
Under Google’s supervision, Motorola came up with its flagship devices like Moto X and Moto G smartphones which were Android-based, but was still short of fetching profits. A 249 million dollars loss in the third quarter was posted in previous year, whereas 24 per cent loss was reported for the identical period prior to the aforesaid tenure.
Lenovo is optimistic about Motorola’s takeover that it will serve as a gateway for the Chinese company to compete in the global battlefield with giants like of Apple and Samsung. This deal will also assist registering Lenovo’s name at the third place in the list of world’s leading smartphone makers.
Currently, Lenovo is the second largest seller of smartphones in China and fourth on the international list of smartphone vendors, following tech monsters like Samsung, Apple and Huawei.
Beijing-based firm also show its interest in purchasing Motorola handset business for a massive $2.91 billion and share agreement last week.