IBM PC Division Sold to China

It has been announced that IBM will sell its PC division to the China-based Lenovo Group and take a minority stake in the former rival in a deal valued at $1.75 billion. The two companies will form a complex joint venture that will make Lenovo the third-largest PC maker in the world, behind Dell and Hewlett-Packard, but still give IBM a hand in the PC business. The deal is expected to be completed in the second quarter.

Under the deal, IBM will take an 18.9 percent stake in Lenovo. Lenovo will pay $1.25 billion for the IBM PC unit and assume debt, which will bring the total cost to $1.75 billion.

Lenovo will be the preferred supplier of PC's to IBM and will be allowed to use the IBM brand for five years under an agreement that includes the "Think" brand. Big Blue has promised to support the PC maker with marketing and via its IBM corporate sales force.

Just thought you should know in case you are thinking of buying an IBM computer. China is definitely becoming a world economic power.