“China’s largest personal computer maker, Lenovo Group Ltd., said Wednesday it is buying control of IBM’s PC-making business for $1.25 billion, capping the U.S. tech giant’s gradual withdrawal from the business it helped pioneer in 1981. The agreement, which forms the world’s third largest PC business, calls for Lenovo to pay IBM $650 million in cash, $600 million in Lenovo Group common stock and for Lenovo to assume $500 million in net balance sheet liabilities from IBM. IBM will hold an 18.9 percent stake in Lenovo,” Reuters reports.
“Based on 2003 results, the companies will have annual revenue of $12 billion on sales of 11.9 million units, according to a news release,” Reuters reports. “The deal closes an era for the world’s largest computer company and kicks off a new age in which China’s top PC maker Lenovo steps onto the world stage as a major PC brand and IBM partner… Lenovo will take ownership of IBM ‘Think’ trademark family, including its ThinkPad notebook brand and its ThinkCenter desktop line.”
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MacDailyNews Take: December 8, 2004. Apple Computer is still in the PC business. IBM isn’t. Whoda thunk it? On August 12, 1981, IBM released their first personal computer, the “IBM PC.” The “PC” stood for “personal computer” making IBM responsible for popularizing the term “PC.” The first IBM PC ran on a 4.77 MHz Intel 8088 microprocessor and came with 16 kilobytes of memory, expandable to 256k. The IBM PC came with one or two 160k floppy disk drives and ran a brand new 16-bit operating system from Microsoft called MS-DOS 1.0. The price tag started at $1,565, which would be nearly $4,000 today.