Lenovo Back in Talks on Acquisition of IBM Server Business Unit

Lenovo, the world's leading PC maker in terms of volume and market share, is still interested in acquiring IBM's server division. Though Lenovo's been able to grow its PC business while nearly every other OEM has seen declines in shipments the past several quarters, a move like this would expand Lenovo's product offerings into more stable territory.

Citing "a source familiar with the matter," Reuters says Lenovo and IBM have resumed talks on the topic. It's worth mentioning that Lenovo had shown interest before, but the two sides couldn't come to terms on pricing last year, so an agreement was never reached. It's said IBM was looking for between $4 billion to $6 billion for its server unit, whereas Lenovo was reluctant to spend more than $2.5 billion.


Lenovo may have done the right thing by walking away from the deal, as analysts now say the price is hovering around $2.5 billion and $3 billion. If the deal goes through in that range, it would be the biggest ever in China's IT sector, Reuters reports.

Likewise, if a deal with Lenovo still can't be hammered out, Dell could emerge as a possible buyer. Dell went private in a $25 billion deal last year and is said to be interested in IBM's server business, though it's not clear how much Michael Dell and company would be willing to fork over for it.