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Lenovo Begins Buyback Of Lenovo Mobile

Posted by Dark Legion 11/30/2009

Hoping to better target the mobile Internet market, Lenovo announced that it is planning to buy back the entire interest of Lenovo Mobile Communication Technology from a group of investors. Lenovo is putting up $200 million in cash and stock to reacquire its former mobile business sold to a group of investors in March 2008.

The announcement shows just how anxious PC makers are to get in on the handheld smartphone market, especially since we're seeing more convergence between the personal computing and mobile handset industry. It also shows how important China is to the market with its 700 million mobile subscribers. Given that Lenovo Mobile currently ranks No.3 in China’s mobile handset market and is the No.1 domestic brand, the acquisition provides a good way for Lenovo to get a quick stronghold in the market. Industry analysts project the China mobile Internet market will grow to exceed $16 billion by 2014.


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