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China's Biggest PC Maker Lenovo to Buy the Global Giant IBM! [Copy link] 中文

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Post time 2004-12-6 22:56:55 |Display all floors
Today both the New York Times and the Financial Times report that China’s largest PC maker Lenovo (Lianxiang) is said to be in talks to acquire IBM’s PC operations. The deal, analysts say, is likely to be US$1 - 2 billion, and if completed, it will lift Lenovo to the third position in the world PC industry.

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Post time 2004-12-6 23:26:34 |Display all floors

lenovo is not buying ALL of ibm, just the desktop and notebook opearations

ibm has outsourced the manufacturing of its desktop and notebook pc's several years now.  it has no manufacturing infrastructure in its pc operations ... only a group of highly skilled designers and engineers, and a whole bunch of intellectual property.  

the pc market has been consolidating for some time now, and was the major driver behind the hewlitt-packard/compaq merger two years ago.  

in recent years, ibm has earned less and less money from its pc division compared to other divisions, such as middleware, server computers, and its global services arm.  currently, ibm global services (consulting and integration) comprises more than 50 percent of ibm revenues.  

ibm was unable to make money off its pc's, even though they are well-designed and sell well.  the reason is that the highly competitive nature of the business means very thin profit margins.  

still ... it's amazing to see ibm sell away the pc business that it basically launched in 1980 (along with bill gates' empire).  sign of the times in technology.

ts

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Post time 2004-12-7 00:24:41 |Display all floors

Re:lenovo is not buying ALL of ibm, just the desktop and notebook opearations

yes. I said it in the post. The tile so treated is only for catching your eyeball.

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Post time 2004-12-7 01:20:36 |Display all floors

ouch! let go of my eyeball!!

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Post time 2004-12-7 05:27:21 |Display all floors

tspest, that's not all the news yet....let go your buddy's eyeball too

Shanghai SAIC takeover of Rover signals end of Britain's once-thriving car sector

After a century producing some of Britain's best-loved - as well as its most-loathed - cars, Rover yesterday confirmed a takeover deal by a Chinese state-owned company that marks the passing of Britain's last major motor vehicle manufacturer into foreign hands.

http://news.independent.co.uk/business/news/story.jsp?story=585075
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Or read from here:

         
SAIC to bail out struggling MG Rover
(Xinhua)
Updated: 2004-11-22 11:16

Chinese automaker Shanghai Automotive Industry Corp. (SAIC) was set to control a crucial joint venture with Britain's struggling manufacturer MG Rover, the Longbridge-based company said Saturday.

SAIC was ready to inject about 1 billion pounds (US$1.8 billion) into Britain's sole remaining carmaker as part of a new joint venture, MG Rover said in a statement.

SAIC would hold a 70 percent stake in the new company and MG Rover would take the remaining 30 percent stake, said Stewart McKee, MG Rover's head of international media.

The joint venture would develop and produce cars in China and England and was expected to make 1 million cars a year, McKee said.

The deal was a “tremendous opportunity” for both sides, he noted.

SAIC's investment will provide crucial liquidity for the ailing British group and securing its 6,100 jobs, while the MG Rover brand will give the Chinese automaker a solid base in Europe as it steps up overseas expansion.

However, MG Rover spokesman Daniel Ward stressed at a news conference that his company would remain independent. “It is not a takeover, it’s a partnership,” he said, refuting earlier reports that SAIC would acquire the group.

The investment would be used to develop a new range of models, the first of which would be a replacement for the Rover 45 due in 2006, Ward said, adding a new small car, a large executive model and a new sports car were set to follow.

“The plan would be to build all the core models in both locations,” he said.

Final details of the deal were still being worked out, but the plan could be submitted to the Chinese Government later this year and approval was expected by the end of January, he said.

MG Rover has been struggling to break even after being sold four years ago by Germany's BMW AG for just 10 pounds.

Analysts said there would be separate British and Chinese companies to make the new models in Birmingham and Shanghai but the key assets and intellectual property rights would be contained in the venture, giving SAIC effective control.

SAIC, one of China's largest and most profitable automakers, sold 600,000 cars last year — more than four times the number sold by its British partner.

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Post time 2004-12-7 05:58:56 |Display all floors

Public Service Announcement

Life after T-bills = the end of US dollar hegemony = the beginning of the end of US superpower.

Knockers up, girls!

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Post time 2004-12-7 06:10:31 |Display all floors

mg rover?

is that the company that makes the mini and land rovers in the u.s.?  anyone know?  

that would be an important first ... chinese cars sold here in car country.

ts

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