The IBM Corp is discussing to sell off its x86 server hardware business to Lenovo Group, the Chinese computer manufacturer. This was confirmed by technology news site CRN citing anonymous sources with direct knowledge of the pending transaction.
IBM is said to have priced between US$5 billion and US$6 billion for the server business. This business sells low priced servers used to provide services for large corporate data units. This has been one of the most commercially viable revenue streams for the technology company.
According to IBM Chief Financial Officer Michael Loughridge said his company would not be responding to rumors when asked during a post earnings conference call about the CRN newsbreaking story.
IBM is still the world's largest technology company and has reported a first quarter earnings rise last Thursday. Unfortunately, the company missed estimates because of the depreciation of the Japanese yen.
For its part, Lenovo representatives could not be reached for comment outside regular business hours.
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