Feeds

IBM, Lenovo to announce JV 'this week'

Big Blue PC division sell-off not on the cards, apparently

  • alert
  • submit to reddit

High performance access to file storage

Far Eastern sources continue to claim that IBM and Chinese PC maker Lenovo are in joint-venture discussions rather than pursuing the all-out acquisition of Big Blue's PC division.

Neither company has formally commented on their talks, first reported a few weeks ago. The story was re-ignited last week when a number of US news services claimed IBM was attempting to sell its PC operation.

Reports claimed IBM has hired Merrill Lynch to seek a buyer for the Personal Systems Group (PSG), allegedly with a $2bn asking price. PSG achieved revenues of $3.3bn during the three months to 30 September 2004, but lost $50m. It's the world's third biggest PC company in terms of sales.

Last week, IBM announced the formation of a consortium, Power.org, to promote the use of its Power and PowerPC processor lines in the Asia-Pacific region for both embedded and computing products. That might seem confirmation of a shift of focus away from x86, but PowerPC comes out of IBM's Systems and Technology Group (STG), which has always had a different agenda from PSG.

Sources said to be familiar with the deal say an announcement will be made on Thursday, 9 December this week, according to a DigiTimes report.

Meanwhile, Chinese-language newspaper the Economic Daily News has pegged 15 December as the date at which Lenovo and IBM will formally comment on their discussions.

Far Eastern sources continue to suggest, contrary to last week's reports out of the US, that IBM and Lenovo are exploring the merger of their respective operations into a separate, jointly owned company. The JV would leverage both firms' brands, and seek to exploit the economies of scale. ®

Related stories

IBM said to be in PC divison sell-off talks
IBM, Lenovo ponder world desktop PC JV
IBM to Power China
IBM, Sony to detail 'Cell' PS3 CPU February 2005
IBM, Moore's Law and the POWER 5 chip
Dell drops out of China's low-end PC market

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.