So IBM will not sell off its x86 server business after all-- Fortune reports Lenovo-IBM negotiations have "broken down," at least according to anonymous sources familiar with the situation.
News on the supposed deal emerged earlier last month from The Wall Street Journal and CRN.
According to Fortune discussions screeched to a halt over "valuation concerns," meaning the two companies could not decide over the actual value of the x86 segment in question. Bloomberg values it at $2.5-4.5 billion, while others suggest IBM demands up to $6bn-- a price tag Lenovo "balked at."
Lenovo admitted it was in "preliminary negotiations with a third party in connection with a potential acquisition" last week in a Hong Kong stock exchange filing. It refuses to comment directly on the news stories, as does IBM. Read more...