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Lenovo, NEC mobile phone talks break down -- report

Talks between the two companies over a mobile phone deal reportedly break down due to issues with ownership and patents.

NEC's dual-screen smartphone.
NEC's dual-screen smartphone. CNET News Asia

Lenovo's plan to double down on the mobile space might be scuttled before it even got off the ground.

The company was rumored to be working with Japan-based NEC to acquire, or at least partner, with the firm's mobile division. However, a new report from the Nikkei on Wednesday suggests the talks between the companies have broken down.

Lenovo and NEC have been unable to come to terms on ownership of both the company and patents, according to the Nikkei, citing people who are familiar with the talks. NEC is now reportedly considering other partnership options, but a deal between the companies could still be struck.

Reports surfaced in March suggesting NEC would sell its ailing mobile phone business to Lenovo. NEC has been unable to gain traction in the mobile space, and has been hit with losses over the last two years. Lenovo, meanwhile, wants to improve its standing in the mobile market. Making a deal with NEC would have given them a foothold.

(Via Reuters)