IBM, creator of the original PC in 1981, has sold its computer business to Chinese assembler Lenovo, formerly the Legend Group. Lenovo will pay Big Blue $1.25 billion, with $650 million in cash, and IBM will retain an 18.9 per cent stake in the joint venture. Lenovo will be IBM's preferred supplier and retains the right to use the brand for five years. The deal excludes IBM's eServer x86 PC servers.
IBM's chief executive Sam Palmisano cited economies of scale, explaining in a release that the consumer PC market was increasingly resembling the consumer electronics business, and that the deal would help maintain IBM's focus on business computing.
Read the complete story here. (The Register)