3 ms·
It may have been the case that Lenovo could not afford to pay 3B in cash over the next three years. Using their own stock helps them compensate Google for how
by bgilroy26 13y ago
It may have been the case that Lenovo could not afford to pay 3B in cash over the next three years.
Using their own stock helps them compensate Google for how much they feel Mobility is worth without putting themselves in a tough liquidity position etc.
- netcan 13y agoI get that there are considerations like this. But in that case, would it mean that Google should gradually sell off this stock?
- deelowe 13y agoOnly if they see it as a bad investment or they need cash. Otherwise, it's probably fine to leave it as is and defer the taxes. [EDIT] Oh, and they have a 5% stake in lenovo, which should benefit android and chromeos (and maybe keep MS in check).
- Consultant32452 13y agoLarge corporations hold on to all sorts of assets as investments. This can range from stocks and bonds to real estate or intellectual property. This is very common. Tangentially related to this transaction you may or may not be aware that pretty much any company that funds its own insurance (most large companies) are required by law to hold investments that will help carry them over for any insurance claims. So there is some fund they hold that has stocks, bonds, etc. set aside so that they are covered for insurance claims. The same is true of pension funds.