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Reports: Lenovo in Talks To Buy IBM's x86 Server Business

IBM appears to be shopping its x86 server business again and could be within weeks of a deal with Lenovo, according to several reports.

Lenovo, which bought IBM's PC unit in 2005 and has since turned itself into the world's highest-volume PC manufacturer, is in talks with IBM about buying the x86 server unit, according to anonymously sourced reports by Bloomberg and The Wall Street Journal on Tuesday. A few days earlier, the WSJ also reported that Dell was in talks with IBM about the server business. 

Lenovo and IBM discussed a potential deal last year, as well, according to both media outlets, but ultimately were unable to agree on a value for IBM's low-end server unit.

According to analysts, IBM is looking to focus on its more profitable service and software businesses, while Lenovo is seeking to diversify into servers for growth as the PC market struggles.

Posted by Scott Bekker on January 22, 2014


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