IBM, which gave legitimacy to the personal computer business in the 1980s, is said to be negotiating the sale of its PC unit in a move that could reshape the industry.
The company is negotiating with Chinese manufacturer Lenovo Group, formerly known as Legend, and at least one other buyer to sell its PC business unit, according to a report in Friday"s New York Times. The unit could fetch as much as $2 billion, the report said. IBM spokesman Clint Roswell on Friday said the company"s policy is not to comment on rumor or speculation. Representatives at Lenovo were unavailable for comment.
In morning trading, IBM"s stock was up 1.28 percent to almost $97. IBM selling its PC business to Lenovo, which would most likely result in a joint venture of some sort, would make sense for both companies, analysts said. Such a deal would free IBM--which has been moving away from commodity products--from managing a difficult and often money-losing venture, while still giving it access to desktops and notebooks to provide to its customers.