Lenovo Building Business With $5B in Acquisitions

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Jan. 30 (Bloomberg) -- Bloomberg Industries senior analyst Anurag Rana examines Lenovo’s recent acquisitions and why Google sold its Motorola Mobility unit on Bloomberg Television’s “In The Loop.”

Before we get to google and motorola.

Why now?

Why are they making these big acquisitions now?

Ibm has been trying to get rid of this business for a while.

Ibm got rid of its pc business 10 years ago, 2005. it really good for them.

They want to be a services company largely in software.

This was an area that has been holding their growth down for several quarters now.

The hardware numbers, the server numbers are really bad, especially china.

So, they wanted to get rid of this business.

Lenovo is the right fit.

Lenovo cannot only take this and sell it on the chinese market because they are a local vendor, but after the nsa stuff, it became a bigger headache for the u.s. hardware companies to sell their hardware.

Some people might say why are we talking about lenovo.

I don't know the company very well.

We have been talking about google and microsoft and facebook and all the other tech companies, but perhaps we have been ignoring this chinese company out there in the east that has actually been doing some pretty interesting things that we have not really been noticing.

The pc world, they are doing really well.

Gaining market share.

They are the folks to reckon with largely because of ibm's legacy business.

With the server business, they also get a lot of relationship, contract that they have.

It is a good deal for, i think, both of them in this situation.

Google, why would they let go of motorola only two years after buying it?

The first question would have been when they bought it, why would you want to get into the hardware business to begin with?

We all thought they had something up their sleeves.

Of this is what they had up their sleeves, they wanted to keep the -- and this is what they had up their sleeves.

They wanted to keep the portfolio.

They have that.

And the rest of the hardware stock, they got rid of it.

Is there a lesson for microsoft here?

They bought nokia.

That is a very good question.

It will be very interesting -- they are trying to merge software and hardware as well.

But they are now creating surface, hardware, so it will be interesting whenever the new ceo comes, what the mindset is.

There are two elements for microsoft.

One side is saying that you want to get both the consumer and the enterprise side to be able to succeed, and the other side is saying just the enterprise.

Steve ballmer obviously said he wants both sides and it will be interesting if the new seat -- when the new ceo comes, what direction.

What the new ceo will want and not the ball mark.

Anurag, thank you so much.

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And it is still going through some growing pains.

We will hear from the company's executives about its plans to stay relevant.

Eight "in the loop." ?

This text has been automatically generated. It may not be 100% accurate.

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