[EDIT : Techcrunch removed article, here's another link (thank you w1ntermute) :
http://www.reuters.com/article/2014/02/07/us-google-lenovo-idUSBREA1606B20140207
"Google paid $750 million for a 5.94% stake in Lenovo Group on Jan. 30, according to a disclosure on the Hong Kong stock exchange. The purchase was made on the same day after Google announced that it had agreed to sell the Motorola brand to Lenovo for $2.91 billion, but will keep most of the handset maker’s patents.<p>The purchase of shares might be part of the deal, in which Lenovo agreed to pay a total of $2.91 billion, with $750 million in Lenovo ordinary shares, $660 million comprised of U.S. cash, and the remaining $1.5 billion in a three-year promissory note.<p>According to one of our sources, Google had wanted to sell Motorola for some time before striking the agreement with Lenovo because the handset brand has yet to live up to its purchase price, but had to hold off on selling the division for tax reasons. On the other hand, buying Motorola helps Lenovo build out its cell phone business. There were rumors in October that it had submitted a bid for BlackBerry, but was turned down."
No, Google Didn't Just Buy $750 Million Worth of Lenovo Shares: <a href="http://on.recode.net/1eDFe17" rel="nofollow">http://on.recode.net/1eDFe17</a> via @InaFried
Here's another article, since the linked one seems to be down: <a href="http://www.reuters.com/article/2014/02/07/us-google-lenovo-idUSBREA1606B20140207" rel="nofollow">http://www.reuters.com/article/2014/02/07/us-google-lenovo-i...</a>
Grossly misleading title.<p>The title on Reuters is "Google to own $750 million Lenovo stake after Motorola deal closes: HK exchange", which is what it is.
I'm genuinely confused about large companies constantly "reinvesting" their profits. I understand that a case can often be made for this or that strategic investment and that this is part of complicated maneuvering, paying in stock and such. I just don't understand the value (from a shareholders perspective) of owning share in Google that owns shares in some other company.<p>That aside, why does Google need to own stock in companies? Why not return money to investors and let them buy whatever stock they want.
Makes sense to keep a foot in that door. Lenovo are eating the PC market, and this will also no doubt ensure things like Android, Chromebooks and Google search by default remain on Lenovos agenda.