Thursday December 09, 2004 On The Margins
(Masood Mortazavi)
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Thursday December 09, 2004
[ Business ]
Yang Yuanqing
"We are not satisfied to be only number three," Yang Yuanqing, Lenovo's president said, as quoted by the Financial Times. Yang "said it would pave the way for Lenovo to challenge global market leaders Dell Computer and Hewlett-Packard."
Earlier this week, IBM announced it has sold its PC business to Shanghai's Lenovo for $1.75 Billion.
Lenovo began as a type of PC delivery service some 20 years ago and now "has captured one of the most glittering names in capitalism," writes Peter Goodman of The Washington Post. Lenovo will be allowed to use the IBM brand for five years, reports The Wall Street Journal. "Lenovo will pay IBM $650 million in cash and as much as $600 million in stock, representing 18.9% of Lenovo's equity. It also will take on $500 million in balance-sheet liabilities."
Lenovo will have 9% of the global market share in PCs.
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I work at Sun Microsystems. The opinions expressed here are purely my own, and neither Sun nor any other party necessarily agrees with them.Coordinates
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