Lenovo to Reacquire Mobile Phone Unit for US$200 Million
December 02, 2009
Chinese Lenovo announced on November 27 that the company will earmark US$200 million in cash for the re-acquirement of Lenovo Mobile, its mobile phone business sold in 2008 for US$100 million, the Wall Street Journal News reported on November 30. With blurrier boundaries between mobile phones and PCs, Lenovo plans to diversify its business scope, which is currently focusing mainly on personal PCs, to include mobile Internet devices, leveraging Lenovo Mobile's technology in mobile Internet, according to the same source. In addition, Lenovo stated that the company is projected to roll out new mobile phone products under the Lenovo brand soon.
Aside from Lenovo, other PC makers, including Dell, HP, Acer and Asus all have adopted the same product strategy and launched their own-brand mobile phones, with an aim to diversify their product portfolios. Currently, the deal is still pending approval by Lenovo shareholders, according again to the Wall Street Journal.