Lenovo (HKSE: 992) (ADR: LNVGY) is dedicated to building exceptionally engineered personal computers. Lenovo's business model is built on innovation, operational efficiency and customer satisfaction as well as a focus on investment in emerging markets. Formed by Lenovo Group's acquisition of the... More
Friday, Feb 73:19 AM
Friday, Feb 73:19 AM| 4 Comments
- Reports that Google (GOOG) has purchased a 5.94% holding in Lenovo Group (LNVGY) for $750M are incorrect, the re/code Web site says.
- Re/code writes that the reports were due to a misreading of a filing by Reuters.
- Google is due to receive $750M worth of Lenovo shares as part of the deal to sell its Motorola handset division to the Chinese company for $2.91B in cash and stock.
Tuesday, Feb 412:37 PM
Tuesday, Feb 412:37 PM| 12 Comments
- The Nikkei reports Sony (SNE +5.1%) is in talks to sell its Vaio PC unit, and is looking to receive ¥40B-¥50B ($394M-$492M).
- The report follows one over the weekend stating Lenovo (LNVGY), which last month struck deals to buy Motorola Mobility and IBM's x86 server unit, is in talks to acquire Sony's PC ops. Sony called the report inaccurate, but admitted it's exploring options for the business.
- Sony shares have shot higher on the Nikkei's report. Investors like the idea of unloading a loss-generating unit that has struggled to deal with declining PC sales and tough competition from Lenovo, H-P, and others. The company's FQ3 report is due on Thursday morning.
- Thanks to both the Sony report and a massive equity selloff, Lenovo shares are down 16% in Hong Kong over the last two days.
Friday, Jan 317:20 PM
Friday, Jan 317:20 PM| 17 Comments
- After taking in Google's (GOOG) Q4 numbers, FBR estimates handing off Motorola Mobility to Lenovo (LNVGY) could boost the Web giant's op. margin by as much as 500 bps. Whereas Google proper has an op. margin of 34%, Motorola's losses dragged down the company's total op. margin to 29%.
- TechCrunch reports that with Motorola gone, newly-acquired Nest will serve as Google's primary hardware team. Nest, founded by iPod "godfather" Tony Fadell, will reportedly develop gadgets very different from the smart thermostats/smoke alarms it's known for.
- Many observers think the Lenovo sale is at least partly tied to Google's recent deals with Samsung (SSNLF). The reasoning: Samsung's reported willingness to embrace a vision of Android closer to Google's (toning down support for custom apps/UIs, and promoting Google apps/services) is linked to Google's decision to sell its mobile hardware unit.
- It's possible Google also gave Samsung favorable terms in their recent cross-licensing deal. In terms of patent portfolio/breadth, Google held the upper hand.
- In addition to keeping most of Motorola's patents, Google is holding onto the company's Advanced Technology unit, which is responsible for the Project Ara modular phone initiative.
- Lenovo says it will keep the Motorola brand in the U.S., and that it aims to eventually pass Apple and Samsung to be the world's largest smartphone vendor.
- Previous: Google earnings coverage
Wednesday, Jan 295:25 PM
Wednesday, Jan 295:25 PM| 38 Comments
- Just an hour after reports emerged Google (GOOG) is set to sell Motorola's phone ops to Lenovo (LNVGY), the deal has been announced by Larry Page. Lenovo will pay $2.91B for the struggling, loss-generating smartphone maker; Google will retain the "vast majority" of its patents.
- Page explains the deal by stating the smartphone market is "super competitive," and that "it helps to be all-in." He promises the sale doesn't have broader implications for Google's hardware efforts.
- Google paid $12.5B for Motorola Mobility in 2011. After backing out the Lenovo sale, the Arris sale, and $3.5B in cash, Google effectively paid ~$3.7B for Motorola's patents, assuming one doesn't count the losses the phone unit has produced under Google's control.
- The sale expands Lenovo's U.S. presence, and gives it access to Motorola's respected hardware engineering teams as it tries to grab high-end Android share from market leader Samsung (SSNLF). IDC estimates Lenovo had a 4.9% smartphone share in Q4 (up from 4.1% a year ago).
- The deal also removes a point of friction between Google and its Android partners. It shortly follows a report stating Google has pressured Samsung to tone down its Android UI changes and more strongly emphasize Google's apps/services, as it tries to exert greater control over Android's look and feel.
- GOOG +2.2% AH. In addition to the Motorola deal, shares could be getting a lift from Facebook's Q4 beat.
Wednesday, Jan 294:19 PM
Wednesday, Jan 294:19 PM| 6 Comments
- Reuters and China Daily both report Lenovo (LNVGY) is set to buy Motorola Mobility's phone unit from Google (GOOG). The former says the price tag is close to $3B; the latter says it's "at least" $2B. China Daily says the deal will be announced tomorrow morning in Beijing.
- Motorola Mobility has been bleeding share and (in spite of huge job cuts) posting big losses since Google's 2011 acquisition, as products such as the Moto X and Moto G fail to produce a turnaround in the face of stiff high-end competition from Samsung and Apple, and stiff low-end competition from a slew of Asian OEMs (including Lenovo).
- Google has already sold Motorola's set-top/cable infrastructure unit to Arris for $2.35B. The company will presumably hold onto Motorola's sizable mobile patent portfolio.
- Investors are pleased, GOOG +1.2% AH. Q4 results are due tomorrow.
Wednesday, Jan 226:55 PM
Wednesday, Jan 226:55 PM| Comment!
- The WSJ reports Lenovo (LNVGY), once the buyer of IBM's PC unit, is now close to acquiring its x86 server ops. Sources state a deal could be announced as soon as tomorrow.
- No word on price; "interested parties" not named Lenovo reportedly valued the unit at $2.5B when IBM shopped the business last year, but its recent performance might spell a lower price tag.
- Big Blue reported yesterday its x86 server sales fell 16% Y/Y in Q4; that was actually better than the 26% drop reported for hardware/chip sales overall. The business has been pressured by fierce competition from H-P and Dell, and the use of white-label hardware by Web/cloud giants.
- Selling the x86 unit would continue a long-term trend by IBM of unloading lower-margin hardware businesses in order to focus on software/services. It would also strengthen a balance sheet that has been dinged by huge buybacks and declining free cash flow (-18% Y/Y in 2013).
- Previous: Lenovo reportedly in talks to buy x86 unit
Monday, Jan 209:58 PM
Monday, Jan 209:58 PM| 2 Comments
- Lenovo (LNVGY, LNVGF) is in talks to buy IBM's low-end x86 server business, and a deal could be signed within weeks, Bloomberg reports.
- The two companies were said to be negotiating a deal for the division last year, but no agreement was reached on a price.
- Lenovo said today it’s in preliminary discussions on some kind of possible acquisition, but it did not identify the target or seller.
- Dell also may be among potential buyers, but it's not clear how seriously it is considering an acquisition.
Friday, Oct 182013, 1:58 AM
Friday, Oct 182013, 1:58 AM| 11 Comments
- Lenovo (LNVGF.PK) will probably just try to acquire parts of BlackBerry (BBRY) rather than the whole company, Reuters reports, due to regulatory concerns.
- The news agency's article is in contrast to a WSJ report that said that the Chinese computer maker is "actively considering a bid for all of BlackBerry."
- Reuters didn't specify what the regulatory concerns are but did cite experts who believe that BlackBerry's secure network would probably be sold to a North American buyer because of security issues, especially as the U.S. government is a major customer.
Thursday, Oct 172013, 3:49 PM
Thursday, Oct 172013, 3:49 PM| 69 Comments
- Sources tell the WSJ Lenovo (LNVGY.PK) is "actively considering a bid for all of BlackBerry (BBRY +0.2%)," not just parts of the company, as is reportedly the case for other tech names.
- "Goodbye U.S. gov't contracts," quips Dan Primack. Given the roadblocks extended to Huawei and ZTE by U.S. politicians and regulators, and general concerns about hacking incidents blamed on the Chinese government, it's safe to assume any Lenovo bid for the whole of BlackBerry would receive intense scrutiny.
- Earlier: Lenovo reportedly signs NDA with BlackBerry
Thursday, Oct 172013, 2:48 PM
Thursday, Oct 172013, 2:48 PM| 36 Comments
- Dow Jones reports Lenovo (LNVGY.PK) has signed an NDA to look at BlackBerry's (BBRY +1.6%) books. The report comes two days after one from Bloomberg indicating an NDA has been signed with Cerberus.
- Lenovo has been featured in BlackBerry M&A speculation more than once this year, in part due to comments from Lenovo execs. But the Chinese PC/smartphone vendor's relatively small market cap could be an issue, as might national security concerns (should Lenovo want to acquire BlackBerry's network).
- BlackBerry has rallied a bit on the report.
Wednesday, Aug 282013, 12:14 PM
Wednesday, Aug 282013, 12:14 PM| 53 Comments
- Rumors Lenovo (LNVGY.PK) will make a $17/share bid for BlackBerry (BBRY +5.3%) are fueling a rally in the latter company's shares.
- BlackBerry shares have already soared more than once this year on Lenovo speculation (I, II) that didn't pan out. But that was before the company began formally evaluating "strategic alternatives" widely believed to include a sale.
- The fact Lenovo's market cap only stands at $10B means acquiring BlackBerry in full wouldn't be easy, should the Chinese PC/smartphone giant be interested.
Wednesday, May 12013, 5:53 PMTalks between IBM and Lenovo (LNVGY.PK) regarding the sale of IBM's x86 server business have broken down, sources tell Fortune. Lenovo reportedly balked over IBM's asking price - according to one CRN source, it was around $5B-$6B - for the business, which had an estimated $4.9B in 2012 sales and saw a 9% Y/Y revenue drop in Q1. Regardless of the specific price, Lenovo (current market cap of $10.4B) would have a tough time digesting the unit. (prior reports: I, II) |Wednesday, May 12013, 5:53 PM| 2 Comments
Thursday, Apr 182013, 1:53 PMIBM (IBM -0.8%) is in "active negotiations" to sell its x86 server business, and Lenovo (LNVGY.PK) is the frontrunner to buy it, "multiple sources" tell CRN. An industry exec claims IBM wants $5B-$6B, and likes the idea of selling to PC division buyer Lenovo, since it doesn't compete much with IBM elsewhere. A purchase of that size wouldn't be easy for Lenovo, give its market cap is only $8.6B. IBM, which reports after the close, saw its x86 sales fall 2% Y/Y in Q4, as white-label sales to Internet firms account for a growing share of industry revenue. Also: trade union reps claim IBM is thinking of cutting 1.2K-1.4K jobs in France over the next 2 years. |Thursday, Apr 182013, 1:53 PM| 2 Comments
Wednesday, Mar 132013, 10:53 AM"There is not and has not been any specific evaluation or activity underway regarding BlackBerry (BBRY -0.9%)," says a Lenovo (LNVGY.PK) spokesman, discussing recent speculative remarks from CEO Yang Yuanqing. BlackBerry shares remain up 9.8% on the week. (Pac Crest) |Wednesday, Mar 132013, 10:53 AM| 7 Comments
Thursday, Jan 242013, 11:43 AMRIM (RIMM +4.3%) has shot higher after Lenovo (LNVGY.PK) CFO Wong Dai suggests his company is open to buying RIM. "We are looking at all opportunities -- RIM and many others" spoke Dai at Davos, while noting RIM's run-up makes a deal more expensive. The comments come shortly after Thorsten Heins mentioned the possibility of selling RIM's hardware ops, something a Canadian government official didn't sound enthusiastic about. Lenovo's smartphone sales have surged lately. |Thursday, Jan 242013, 11:43 AM| 9 Comments
Tuesday, Sep 182012, 2:23 AMNo. 2 global PC maker Lenovo (LNVGY.PK) makes its first software acquisition count, agreeing to buy Utah-based Stoneware to gain technology related to synchronizing data across mobile devices. Lenovo VP Mark Cohen says the company will use the acquisition to build a "public cloud" for consumers - and take on Apple's iCloud service. |Tuesday, Sep 182012, 2:23 AM| Comment!
- View all 3 replies
bd4uandu:: So how can an investor get a piece of Xiaomi?
Matt Lew:: It's private - unless you're a venture capitalist, you can't.
- View all 1 replies
moneymorality:: Great company and people, who's PC + strategy is leading the way.
- View all 1 replies
bd4uandu:: Thanks for the link ... still long but going to wait to add.
- View all 4 replies
Seppo Sahrakorpi:: @bd I was surprised by that too. But Lenovo has impressive growth, and I could not help myself.
- View all 5 replies
Seppo Sahrakorpi:: Thanks, looking good!