IBM (PC) bought by Lenovo...China flexes its muscle

IBM (PC) Take Over...China flexes its muscle

Finally! Turns out the rumors from the last couple weeks are indeed true. Lenovo, a Chinese company bought IBM's PC business for $1.25 Billion. When I first heard about the possibility, I was little surprised, given the current consolidation efforts by large companies. But the price tag of just $1.2 Billion for IBM shocked me. Compare that with Cingular's purchase of ATT Wireless for 40 odd billion dollars. Agreed, its the manufacturng vs services; but its still a very small figure for a company of IBM's stature.

But I guess this is China's not-so-subtle indicator to the world of its capabilities. A lot of people will likely sit up and take notice now. Watch out Dell! You may find China's less expensive overheads and costs a big challenge.