Language Selection

English French German Italian Portuguese Spanish

Lenovo completes acquisition of IBM

Filed under
Hardware

"Within weeks, we will be introducing new products as the new Lenovo," Stephen Ward, Lenovo's chief executive officer, said in a statement.

Lenovo Chairman Yang Yuanqing called the purchase an "historic event" for the company.

The joint venture trails only Dell and Hewlett-Packard in sales, but still gives IBM a hand in the PC business. Under the deal, IBM takes an 18.9 percent stake in Lenovo. Lenovo paid $1.25 billion for the IBM PC unit and assumed debt, which brought the total cost to $1.75 billion.

Based on both companies' 2003 sales figures, the joint venture will have an annual sales volume of 11.9 million units and revenue of $12 billion, increasing Lenovo's current PC business fourfold.

Lenovo will be the preferred supplier of PCs 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 via its IBM corporate sales force.

The deal, which was announced in December 2004, has come under regulatory scrutiny over national security concerns. The Committee on Foreign Investments in the United States, which reviews acquisitions of U.S. businesses by companies based outside the country, has reportedly showed concern that Chinese operatives might use an IBM facility for industrial espionage.

However, the Federal Trade Commission indicated in January that it would not raise any objections to the Lenovo deal on the basis of how the sale might effect competition in the market.

The combined venture will have roughly 10,000 IBM employees and 9,200 Lenovo employees. It will be headquartered in New York, with operations in Beijing and in Raleigh, N.C.

Source.

More in Tux Machines

More Coverage of New Lumina Release

  • Lumina 1.4 Desktop Environment Released
    The TrueOS BSD folks working on their Qt5-powered Lumina Desktop Environment have issued a new feature update of their open-source desktop.
  • Lumina Desktop 1.4.0 Released
    Lumina 1.4.0 carries a number of changes, optimisations, and feature improvements. Lumina is the default desktop of TrueOS, a BSD-based operating system. The desktop itself is lightweight, modular, built using Qt, and uses Fluxbox for window management. Although Lumina is mostly aimed at BSD users it also runs on Linux, including Fedora, Arch and — *mario coin sfx* — Ubuntu.

today's howtos

Security: Uber Sued, Intel ‘Damage Control’, ZDNet FUD, and XFRM Privilege Escalation

  • Uber hit with 2 lawsuits over gigantic 2016 data breach
    In the 48 hours since the explosive revelations that Uber sustained a massive data breach in 2016, two separate proposed class-action lawsuits have been filed in different federal courts across California. The cases allege substantial negligence on Uber’s part: plaintiffs say the company failed to keep safe the data of the affected 50 million customers and 7 million drivers. Uber reportedly paid $100,000 to delete the stolen data and keep news of the breach quiet. On Tuesday, CEO Dara Khosrowshahi wrote: “None of this should have happened, and I will not make excuses for it.”
  • Intel Releases Linux-Compatible Tool For Confirming ME Vulnerabilities [Ed: ‘Damage control’ strategy is to make it look like just a bug.]
    While Intel ME security issues have been talked about for months, confirming fears that have been present about it for years, this week Intel published the SA-00086 security advisory following their own internal review of ME/TXE/SPS components. The impact is someone could crash or cause instability issues, load and execute arbitrary code outside the visibility of the user and operating system, and other possible issues.
  • Open source's big weak spot? Flawed libraries lurking in key apps [Ed: Linux basher Liam Tung entertains FUD firm Snyk and Microsoft because it suits the employer's agenda]
  • SSD Advisory – Linux Kernel XFRM Privilege Escalation

gThumb 3.6 GNOME Image Viewer Released with Better Wayland and HiDPI Support

gThumb, the open-source image viewer for the GNOME desktop environment, has been updated this week to version 3.6, a new stable branch that introduces numerous new features and improvements. gThumb 3.6 comes with better support for the next-generation Wayland display server as the built-in video player, color profiles, and application icon received Wayland support. The video player component received a "Loop" button to allow you to loop videos, and there's now support for HiDPI displays. The app also ships with a color picker, a new option to open files in full-screen, a zoom popover that offers different zoom commands and a zoom slider, support for double-click activation, faster image loading, aspect ratio filtering, and the ability to display the description of the color profile in the property view. Read more Also: Many Broadway HTML5 Backend Improvements Land In GTK4