Lenovo To Buy IBM's Server Business For $2.3 Billion 160
itwbennett writes "Well, that was fast. Earlier this week the rumor mill was getting revved up about a potential sale of IBM's x86 server business, with Lenovo, Dell, and Fujitsu reportedly all interested in scooping it up. On Thursday, Lenovo Group announced it has agreed to buy IBM's x86 server hardware business and related maintenance services for $2.3 billion. The deal encompasses IBM's System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations. IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances." SlashBI has some words from an analyst about why Lenovo wants the x86 product line more than IBM does.
$2.3 Billion (Score:5, Insightful)
So basically Lenovo got a server manufacturer for almost $1Billion less than Snapchat is worth.
The world has gone nuts (Score:0, Insightful)
Snapchat, which makes one app, turns down 3 billion. IBM's server business sells for less.
Chinese Rule!!! (Score:1, Insightful)
Anything left from from good 'ol USA?
Yes I forgot. Numerous 3 letter agencies, cameras, police, security forces in kindergartens, schools and grocery stores, private prisons with largest population in it.
Re:Chinese Rule!!! (Score:5, Insightful)
IIRC Lenovo is headquartered in the US and just opened another plant for PCs in the south. I don’t want to dismiss all of the concerns but let us try to put this in perspective.
Re:Thinkpad line (Score:5, Insightful)
Great (Score:5, Insightful)
Re:$2.3 Billion (Score:5, Insightful)
Re:ugly truth, they never stood a chance. (Score:5, Insightful)
Re:It Makes Sense For Lenovo (Score:4, Insightful)
Re:Weapons grade stupidity (Score:4, Insightful)
I don't know about that...Microsoft's offer of somewhere around $50B for Yahoo comes to mind.
I agree it was a really really really dumb offer and even dumber to turn down but at least Yahoo has profits of about $1 billion/year. The valuation was stupidly high but at least you could base it on something. $3 billion for a company with zero revenues is beyond ridiculous and turning it down has to be one of the dumbest business decisions in the last 20 years.