Feeds

IBM, Lenovo to announce JV 'this week'

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

  • alert
  • submit to reddit

The next step in data security

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

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.