News / Economy

China's Lenovo Buys Google's Smart Phone Business

New Lenovo Vibe X smartphones displayed at IFA, one of the world's largest trade fairs for electronics and electrical appliances, Berlin, Sept. 5, 2013.
New Lenovo Vibe X smartphones displayed at IFA, one of the world's largest trade fairs for electronics and electrical appliances, Berlin, Sept. 5, 2013.
VOA News
China's fast-growing Lenovo Group technology business is buying the troubled smartphone manufacturing division owned by Google, the giant U.S. Internet company.
 
Lenovo, already the world's biggest personal computer maker, is paying $2.9 billion for Google's Motorola Mobility handset-making operation. But the search engine is retaining rights to almost all of the 17,000 patents connected to the phones.
 
Google kept the patent rights so it could continue to control technology licensed to phone makers who use Google's Android software, which powers the majority of the world's smartphones.
 
The deal is tentative pending approval from U.S. regulators. In recent years, the U.S. government has approved the sale of some American corporations to Chinese businesses, while blocking others, largely on grounds that the sales threatened U.S. security in various ways. Lenovo says it does not expect problems getting the deal approved.
 
The sales price marks a failed effort by Google to enter the competitive smartphone business. Google paid $12.5 billion for Motorola in mid-2012, although that deal came with $3 billion in cash and Google sold the company's television set-top box business for $2.3 billion.     
 
The world's smartphone market is dominated by South Korea's Samsung and U.S.-based Apple, with Lenovo third if the deal is completed.
 
Google's share while owning Motorola dropped from 2.3 percent to about 1 percent last year.

You May Like

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month More

This forum has been closed.
Comment Sorting
Comments
     
by: MikeBarnett from: USA
January 31, 2014 3:42 PM
For 12.5 years, the US has been blowing up US computers, cell phones, and digital cameras, the basic components of smart munitions. The US has destroyed more components in its ground and air vehicles that have operated at enormous temperature extremes, from Afghanistan to the Middle East, that are not healthy for electronic components. It is hard to compete in manufacturing and selling products if wars destroy the parts.

In addition, China has rare earths deposits inside China, so the mining and manufacturing can occur in fewer places that lower costs for transportation. If Google retains the patents, a US firm can continue to profit from Lenovo's production, distribution, and sales of finished products. Both companies and countries should profit.


by: Sino-phobia from: Rest of the world
January 31, 2014 6:27 AM
China is trying to buy all the advanced US companies with its bubble money. I'm scared about what happens after its bubble economy collapses. Chinese shadow banking system has already issued approximately 4 trillion US bucks, which correspond to about 55% of Chinese annual GDP. Oh! Bless China!


by: Yasukuni from: Japan
January 30, 2014 12:05 PM
you mean the "People Liberation Terrorist Organization Army" Lenovo is buying the manufacturing division owned by Google... Yeah, that makes me feel real safe... Chinese are toxic in any form..!!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8033
JPY
USD
117.19
GBP
USD
0.6372
CAD
USD
1.1634
INR
USD
63.622

Rates may not be current.