Friday, February 07, 2014, 07:03 am PT (10:03 am ET)
Google will own 6% of China's Lenovo once Motorola deal closesAs part of the $3 billion transaction that will see ownership of handset maker Motorola passed from Google to Lenovo, the Silicon Valley search giant is set to receive stock representing a six percent stake in the Chinese PC manufacturer.
Lenovo anticipates a transfer of more than 618 million shares at a price of $1.21 each, according to a financial disclosure filed Thursday with the Hong Kong Stock Exchange and reported by Reuters. The stake — worth $750 million — is the third leg of the company's purchase agreement alongside $660 million in cash and a $1.5 billion, three-year promissory note.
Google and Lenovo announced the sale last week, less than two years after Google acquired Motorola for $12.5 billion.
That acquisition was mostly about Motorola's vast intellectual property portfolio rather than its hardware businesses, the latter of which Google has successfully rid itself of. Google sold Motorola's set-top box business soon after the original acquisition, and the Lenovo deal leaves Mountain View, Calif.-based Google with the lion's share of Motorola's patents as well as its secretive Advanced Research and Projects division.
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