IBM has put its personal computing business up for sale in a deal that could be worth as much as $2 billion, the New York Timesreported today.
IBM, now the third largest PC maker behind Dell and Hewlett-Packard, is likely to include all of its desktop, laptop and notebook computers in the sale, which could earn it between $1 billion and $2 billion, people close to the negotiations told the newspaper.
Lenovo Group, China's top PC maker, and at least one other company are said to be in talks with IBM, the Times reported.
There have been media reports that Lenovo, which controls more than a quarter of China's PC market, was poised to set up a joint venture with IBM.
Shares of IBM rose 1.8 per cent to $97.52 in pre market trade on INET, up from a close of $95.76 yesterday on the New York Stock Exchange.
Gartner, a leading research firm, earlier this week forecast that three of the top 10 personal computer makers would exit the market by 2007, citing slower growth rates and narrower profit margins.
It did not name any companies. Despite IBM's large size relative to smaller competitors, Gartner said IBM and HP's PC divisions were vulnerable to being spun off "if their drag on margins and profitability are deemed too great by their parent companies."