Lenovo Group buys a big deal: can leftovers spell a feast?

In many people's cognition, Lenovo Group (hereinafter referred to as "Lenovo") is not the tyrants in the It circle, at most, that is, 30 years old seniority, and Lenovo holdings of the same teacher, such as finance, venture capital, real estate, agriculture, etc., is also a "over gas" big Brother that type. However, the purse does not tyrants not equal to the chest is not heroic. The Suiwei of the snake, Lenovo, a series of two recorded surprise, let people "even want to think". The two big strokes, one is to spend 2.3 billion of dollars to acquire IBM X86 Business (IBM low-end server business), one is to spend 2.9 billion dollars to acquire Motorola Mobile business. However, as Lenovo acquired the IBM PC business 9 years ago, for the snake-tail of the two feet before and after the "Serpent Swallow Elephant", the question is more than "point of praise", and the question is more focused on, spent 5.2 billion of dollars to pick someone else's "leftovers", not cost-effective? Everything should be divided in two, although in Lenovo's big idea, is to borrow from a plate of "leftovers", and finally together into a table feast, but for both of these acquisitions, it is necessary to take apart the interpretation. First of all, Lenovo acquired IBM low-end server business. First of all, this business and Lenovo's existing PC business almost the same, channel model is similar. and Lenovo's initial acquisition of IBM's PC business was also a success. Therefore, this "intensified", the IBM low-end server business also take the bag, you can understand. In the current market, the profit margin of the server is higher than the PC, therefore, the acquisition, is expected to thicken Lenovo's asset return. In fact, the market has long been rumored to have bought IBM's low-end server business with Lenovo. In the past, when such rumors come up, it is only time and price, not hearsay itself, that ultimately needs to sit. Of course, a deal is not a bargain, and the price is important. But for Lenovo to buy IBM's low-end server business, prices are expected to be a secondary factor. Why, because the Snowden incident has sounded a wake-up call for our national security, and with IBM server penetration in China, Lenovo has taken it under its own name, far more than billions of dollars. Moreover, low-end servers in the Chinese market is still very large, the future of government, enterprises procurement of such servers, also need not taboo IBM identity. With the author's humble opinion, Lenovo Group acquired IBM low-end server, is done a right thing. Further, if IBM wanted to sell its high-end server business to Lenovo one day, even the "snake-swallow whale" would have money for Lenovo to help it do so. Lenovo buys Motorola Mobile business. Lenovo's official message about the takeover was "Flash", a deal that Lenovo and Google reached in two months. However, has always been a modest association, this time also "lace" once, the external disclosure said, in fact, Lenovo has long been interested in Motorola, when Motorola wanted to sell their own, Lenovo Group CEO Yang and CFO Wong also made a special trip to Motorola negotiations. Only to find the wrong negotiator at the end., and Motorola missed out. Since then, when Google wanted to sell Motorola Mobility to Lenovo, he hastened to negotiate with the US. Lenovo's official disclosure of the two information is not difficult to see, in the acquisition of Motorola Mobile, Lenovo is a mistake, the second is urgent, three is inappropriate. Say it wrong, cover because of the legend Group CEO and CFO, pro-Motorola company, unexpectedly and a person not in charge talk for a long time, so that missed the acquisition opportunity. This, at least two points, one is Lenovo as the buyer, before the company's corporate structure, personnel are not understand, the second is in the Yang and Wong read people countless skills, "bye wrong Pier" after a long time to find, so late to mend. Said its urgent, Lenovo and Google in two months time, the 2.9 billion-dollar deal has been finalized, which can be said to be the embodiment of courage, but the other side, is it too hasty? It is reported that Lenovo 2.9 billion dollars to buy the Motorola Mobile 25000 technology patents in 2000. However, Yang did not disclose the specifics of the 2000 patents. To the author see, the reason is no more than two, one is to the level of yang, the value of the specific patent is not clear; the second is that the 2000 patents may be only a large number, specific Google is willing to sell to Lenovo which, specific each patent valuation, or a long process. As the saying goes, buying is not as good as selling. Believe that the key patents, Google will not be shot. Even if Google wants to sell, some agencies are not allowed to sell it. said that it is inappropriate, according to the Hong Kong stock Exchange announced that Yang in the last November 18 to 21st 4 consecutive reduction of 40 million shares of Lenovo Group shares, 370 million Hong Kong dollar, holdings from 7.92% to 7.68%, so far, Yang in the past two years has been 11 consecutive reduction of Lenovo shares. From now on, it is unclear whether the "start of negotiations with Google two months ago", as Yang said, contains these time nodes. If it does, it means that Yang chose to throw the company stock when he knew the company was likely to have a major merger. This, for Lenovo Group of Small and medium-sized investors, negative psychological impact is not small. In fact, after the news of Lenovo's acquisition of Motorola Mobility, Lenovo's share price plunged 23.27% in two consecutive trading days, and the market capitalisation evaporated by HK $26.525 billion a day has already indicated investor attitudes. The drop in market capitalisation has exceeded the 2.9 billion US dollar (about HK $22.58 billion) purchase price.