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Lenovo reverses course, buys back mobile handset division for $200 million

Updated 4 years ago
Published Nov 27th, 2009 1:10PM EST

Oh Lenovo, does the Chinese launch of Dell’s smartphone leave you feeling left behind? Are you having a bit of seller’s remorse? In an announcement made recently, Lenovo confirmed that it will buy back the mobile handset division that it spun off in January 2008. The world’s 4th largest PC manufacturer will re-purchase Lenovo Mobile for $200 million in cash and stocks from a group of investors who bought it for $100 million. The mobile division, unprofitable when sold, reaped a profit of 30.4 million yuan ($4.45 million USD) last year and now ranks third in China’s highly lucrative mobile phone market. Lenovo hopes to capitalize upon this success and take advantage of key growth opportunities in China’s mobile Internet market. Welcome back, Lenovo. Too bad it took a $200 million cover charge to get you back into the party.