Lenovo Acquires IBM PC Business, Will Make IBM-Branded PCs and Thinkpads
So, IBM and Lenovo have formed a new company from the former PC division of IBM. As the Wall Street Journal reports
A spokesman for International Business Machines Corp. said that Lenovo will pay it $650 million in cash and $600 million in equity, and will take on $500 million in liabilities, totaling $1.75 billion for the business IBM invented in 1981. The new company will become a solid No. 3 in the personal-computer market behind Dell Inc. and Hewlett-Packard Co., and will be the leader in the booming China market.
Twenty-five hundred IBM employees will move to the new company (no, I'm not one of them) and it doesn't really affect manufacturing operations as IBM had been outsourcing that activity for three years now.
With IBM's 18.9% stake in the new company and a lucrative contract to handle sales, service and financing on the machines it loses only the use of its prestigious nameplate for the new PC company.
Josh Poulson
Posted Tuesday, Dec 7 2004 06:26 PM
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