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| Google to own 6% stake in Chinese PC maker Lenovo | |
| (35 minutes later) | |
| Google will own a 6% stake in Lenovo for $750m (£459m) when its deal to sell handset-maker Motorola Mobility to the Chinese PC maker is completed. | |
| According to a stock exchange filing, Google will take 618.3 million Lenovo shares at $1.21 each. | |
| Last month, Lenovo spent a combined $5bn on buying Motorola Mobility and IBM's low-end server business - the two biggest deals in the company's history. | Last month, Lenovo spent a combined $5bn on buying Motorola Mobility and IBM's low-end server business - the two biggest deals in the company's history. |
| However, investors have criticised the Beijing-based firm's acquisition spree. | However, investors have criticised the Beijing-based firm's acquisition spree. |
| Lenovo has lost 24% of its market value since the $2.91bn Motorola Mobility deal was announced on 29 January. | Lenovo has lost 24% of its market value since the $2.91bn Motorola Mobility deal was announced on 29 January. |
| At least five major brokerages have also downgraded their outlook on the firm, which has publicly spoken about its desire to become a global player. | At least five major brokerages have also downgraded their outlook on the firm, which has publicly spoken about its desire to become a global player. |
| However, analysts are pessimistic about its most recent purchase, saying Lenovo may have overpaid and will face a tough time turning Motorola's unprofitable handset business around. | However, analysts are pessimistic about its most recent purchase, saying Lenovo may have overpaid and will face a tough time turning Motorola's unprofitable handset business around. |
| Global ambitions | Global ambitions |
| Lenovo, which was founded in 1984 as a PC distributor, has grown largely due to high-profile global acquisitions. | Lenovo, which was founded in 1984 as a PC distributor, has grown largely due to high-profile global acquisitions. |
| Its 2005 purchase of IBM's Thinkpad business, for example, helped the company overtake Hewlett-Packard as the world's top PC maker in 2012. | Its 2005 purchase of IBM's Thinkpad business, for example, helped the company overtake Hewlett-Packard as the world's top PC maker in 2012. |
| But as more users shunned traditional PCs for more portable devices, Lenovo has been looking to expand its offering under the so-called PC Plus plan. | But as more users shunned traditional PCs for more portable devices, Lenovo has been looking to expand its offering under the so-called PC Plus plan. |
| As a result, the firm has unveiled a line of lower-end tablets and smartphone that have sold well in China and other emerging markets. | As a result, the firm has unveiled a line of lower-end tablets and smartphone that have sold well in China and other emerging markets. |
| It has also launched global marketing campaigns using Hollywood celebrities such as Ashton Kutcher, aimed at making the brand more globally recognised. | It has also launched global marketing campaigns using Hollywood celebrities such as Ashton Kutcher, aimed at making the brand more globally recognised. |
| The company now hopes to produce more sophisticated offerings through its Motorola purchase, and crack the lucrative US and European markets. | The company now hopes to produce more sophisticated offerings through its Motorola purchase, and crack the lucrative US and European markets. |
| The Motorola acquisition has already helped it leapfrog competitors in the global smartphone rankings. | The Motorola acquisition has already helped it leapfrog competitors in the global smartphone rankings. |
| From being the fifth largest smartphone seller in the world last year, it is now set to be the third. | From being the fifth largest smartphone seller in the world last year, it is now set to be the third. |
| Lenovo is scheduled to release its latest earnings on February 13. | Lenovo is scheduled to release its latest earnings on February 13. |