SEC wants data about Google's Motorola unit; Lenovo mum
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On The Web
Morrisville, N.C. — Google (Nasdaq: GOOG) has received inquiries from the U.S. Securities and Exchange Commission over the company’s sales from advertising and mobile-phone unit Motorola Mobility, regulatory filings show.
Google is seeking regulatory approval to sell the money losing Motorola Mobility unit to Lenovo for $2.9 billion.
Contacted by WRALTechWire about the SEC report, Lenovo declined comment.
Lenovo was asked if the company was aware of the situation and was aware before the sale was announced.and would it have any impact on current agreement.
"In response to your request ..., we have no comment," a Lenovo spokesperson said. "You should direct your question to Google."
The world’s largest Internet search provider said it first received a letter in April of last year and has been corresponding with the agency, according to a Feb. 12 filing. The SEC is seeking more detail in a section of the company’s 2012 annual report.
“We believe that we have properly disclosed information related to advertising and Motorola revenues and will continue to cooperate with the SEC to resolve the comments,” Google said in the filing.
The Wall Street Journal also reported the story.
"For nearly a year, the search giant has been trading letters with the Securities and Exchange Commission regarding unspecified disclosures in its financial filings with respect to 'advertising and Motorola revenues' as well as other matters," the newspaper said.
As Google expands its size and reach, the company has also come under regulatory scrutiny regarding issues such as privacy and antitrust concerns. The SEC has previously sent requests to Google concerning public filings, including in 2008, when the agency raised questions over the accounting of payments related to “distribution arrangements.”
Judith Burns, a spokeswoman for the SEC, declined to comment.
Lenovo operates its executive headquarters in Morrisville, N.C.
Lenovoplans to make the phonemaker profitable within four to six quarters without eliminating jobs, according to Chief Executive Officer Yang Yuanqing.
“Don’t be scared by the $1 billion-a-year loss,” Yang, 49, said in an interview at the Mobile World Congress in Barcelona on Monday. “We will improve that even from day one. Google is very good at software, ecosystems and services. But we are stronger in the manufacturing of devices.”
[LENOVO ARCHIVE: Check out eight years of Lenovo stories as reported in WRALTechWire.]
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