Feeds

IBM, Lenovo to announce JV 'this week'

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

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

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

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.