Lenovo shareholders don’t like its “buy everything” plan

While Lenovo seems to be buying every tech company in the world this week, it seems that its shareholders are not happy bunnies.

Shares in Chinese technology giant Lenovo slumped more than 14 percent in Hong Kong, after it agreed to buy struggling handset maker Motorola from Google for $2.91 billion.

The news followed another deal where Lenovo bought IBM’s low-end server business for $2.3 billion.

Shareholders are apparently spooked about Motorola’s profitability and think it was a truly dumb idea to pay such a large amount money to acquire Motorola.

Lenovo in 2013 become the world’s biggest PC maker, eight years after buying IBM’s PC business.

However, investors do not think the Motorola brand is strong enough to boost Lenovo and the handset maker has been on a downward trend for the past two years.

Under Google, Motorola failed to gain traction in a rapidly evolving smartphone market now dominated by Samsung and Apple. Google lost an arm and a leg on Motorola after buying it for $12.5 billion in 2011.

Having said that, Lenovo has shown that it is jolly good at integrating loss making operations in the past and the smart money is riding on the fact it will do it again.