NEWS: Lenovo of China Buying Majority Stake in IBM PC Business, page 1

posted on Dec, 8 2004 @ 03:57 PM

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IBM has sold eighty percent of its personal computer business to China's Lenovo Group for one and a quarter billion dollars. IBM does not produce computers in its own factories, contracting the work out to joint venture operations or outside producers. IBM will focus on computer services and consulting.

www.cbc.ca
ARMONK, N.Y. - Chinese computer maker Lenovo Group will pay $1.75 billion US in cash and stock to buy more than 80 per cent of IBM Corp.'s personal computer business.

Lenovo is already China's biggest PC maker. This purchase will make it the third-largest player in the global market, company president Liu Chuanzhi said.

Once the leader in PC sales, IBM has fallen to third behind Dell and Hewlett-Packard.

While IBM still designs its ThinkPad and ThinkCentre computers, the company doesn't manufacture its PCs at its own plants. They're built by joint venture operations or contracted to outside producers.

The sale of the bulk of the PC business marks another step in IBM's shift toward computer services and consulting.

Please visit the link provided for the complete story.

Among others, RCA and Global Crossing are now owned by Chinese companies and now IBM computers will be largely owned by the Chinese. Is America losing its icons? Many think so and are encouraging the buying public to make sure where their computers are built.

Some experts are suggesting that this move could cause Dell stock to rise by some two to three dollars per share. Clearly, this move by IBM will have far-reaching implications.

Related News Links:
www.forbes.com
news.xinhuanet.com
www.delawareonline.com
www.line56.com

[edit on 04/12/8 by GradyPhilpott]

[edit on 8-12-2004 by ZeddicusZulZorander]

Countermeasures

posted on Dec, 8 2004 @ 04:34 PM

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The chinese WILL get that precious usa technology one way or the other, especially now that IBM has made some breakthroughs with nanoscale Germanium and IPCMOS

If you can't spy it, buy it.

[edit on 8-12-2004 by Countermeasures]

ShadowXIX

posted on Dec, 8 2004 @ 04:46 PM

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How does 80% of IBM only cost $1.75 billion

Mark Cuban sold Broadcast.com for like 4.3 billion IBM has to be worth more then that. Heck IBM spent over a billion to build its new plant in NY.

GradyPhilpott

posted on Dec, 8 2004 @ 04:51 PM

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Originally posted by ShadowXIX
How does 80% of IBM only cost $1.75 billion
Mark Cuban sold Broadcast.com for like 4.3 billion IBM has to be worth more then that. Heck IBM spent over a billion to build its new plant in NY.

IBM is selling eighty percent of its computer business only. Lenovo Group did not buy IBM.

Majic

posted on Dec, 8 2004 @ 05:30 PM

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It's still early to see how each company will fare in the wake of this, but it seems like each gets something it wants: Lenovo gets the famous IBM logo for a while and IBM exchanges one of its less profitable ventures for some decent consideration. Plus a whole lot more.

Additional commentary on this topic from myself and others can be found in this thread: Big Blue Dies (not my title, obviously

)

00PS

posted on Dec, 8 2004 @ 05:39 PM

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That's right, they sell them everywhere down in the China and I can tell you that people go for the Sony and and Panasonic, the Samsung JVC and even the Hitachi or however you spell it. I think they are only doing it to boost their image back at home. No one in the world is going to buy Lenovo Chinese Laptops and computers. Not even Chinese people