Lenovo Group Ltd., a major Chinese manufacturer of computer electronics, is rumored to be planning to purchase a subdivision of IBM. This business is associated with servers, unofficial sources report.
At the same time, The Wall Street Journal reports that Lenovo is planning to purchase a certain share of IBM’s server business.
At the same time, IBM doesn’t reveal the cost of its server business. However, experts working for Morgan Stanley made sophisticated calculations to find out that the subdivision manufacturing x86 servers accounted for $4,9bn out of $15.4bn of last year’s proceeds of IBM.
Lenovo reports that no agreement has been signed so far. If there is a deal, the computer industry will see major changes. A similar major change was seen in 2005 when Lenovo bought IBM’s subdivision working on laptops and desktop PCs. Since then, Lenovo has turned into the world’s second biggest manufacturer of personal computers.
The chart below, courtesy of , reflects the current state of affairs in the market of Lenovo’s stock:
