Stalemate between IBM and Lenovo for the sale of the business server x86

The two companies have not been able to find an agreement on the assessment of the operation.The negotiations will resume and IBM could hardly look for another potential buyer

The negotiations between IBM and Lenovo for the acquisition, by the latter, the division of Big Blue that deals with the development of x86 servers ended with a stalemate. IBM will continue to maintain the division x86 in the immediate future, until it will not be able to locate a new potential buyer.

The rumors of the deal have emerged in the past month , but without any official. The exact terms of the possible agreement were not particularly clear, but the operation could yield to IBM an amount between 2.5 and $ 6 billion. According to what we read of Fortune , however, the two companies would have no trouble to find a convergence on the evaluation of the operation and it seems that the negative outcome, however, does not leave room for further future negotiations.

According to rumors, IBM Lenovo would have chosen for two reasons: first of all be able to turn to a partner already known and with whom he already had to deal successfully in the past, reaching agreement on the sale of the PC division to the Chinese company. Second, but not least, the willingness to sell the division of x86 servers to a reality that already did not represent a threat to the other activities of IBM's business.

IBM, in the course of its history has repeatedly shown the ability to change its business mix shifting of market sectors with higher profit margins and solid growth prospects. In 2005, as already mentioned, Big Blue sold its PC business to Lenovo before personal computers became a commodity and thus shifting the focus on high-margin services and software.