Lenovo Yang: will continue to drive the company's growth through acquisitions

March 18, according to the Wall Street Journal website, Lenovo said today that it still seeks to promote growth through business mergers and acquisitions. In less than two months, Lenovo has spent $5 billion to buy two big businesses: 2.3 billion dollars for IBM's low-end server business, and a 2.91 billion dollar takeover of Google's Motorola mobile phone business. The merger is also part of Lenovo's move to diversify its business beyond PCs.

Lenovo has been looking for new ways to boost the company's growth, and has begun to focus on corporate products like smartphones and computer servers and storage systems.

"We will continue to be part of the growth path of the company through business mergers and acquisitions," said Yang, Lenovo's chief executive. Once we have a good chance, we will seize it. At the same time, Lenovo executives said the company still had enough capital to keep its business growing.

Yang also said today that he believes Lenovo will be able to reverse Motorola's unprofitable position in the 4 to 6 quarters following the completion of the Motorola deal, and not to make Motorola profitable by downsizing, but by increasing economies of scale. In the past two years, the number of Motorola mobile employees has plummeted from 30,000 to 3500, Yang said: "The remaining employees of Motorola Mobility are talent, most of them engineers, who can help Lenovo develop high-end market products." ”

Analysts in the industry believe Lenovo is still likely to address Motorola's losses, as Lenovo has cut manufacturing and procurement spending in the Motorola supply chain, but the analyst also said there is no definitive answer as to whether Motorola could become a stable source of earnings for Lenovo.