7 December 2004 – Armonk (NY): IBM and Lenovo, China’s largest PC manufacturer, plan to create a joint US-based PC company, with Lenovo owning the majority stake, according to a report in the Wall Street Journal.
IBM will allegedly hold on to a minority stake in the venture, small enough that revenues and profit or loss figures will not impact its operating results, but one which will allow the company to hold onto its potentially lucrative servicing and financing business.
Lenovo, which would continue to use IBM’s own branding, stands to gain significant international presence from the deal, which is said to be worth as much as $2 billion.
An official announcement is expected as early as today.
