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more on Could GM, Microsoft End Up in Chinese Hands?
From: David Farber <dave () farber net>
Date: Tue, 28 Jun 2005 17:45:43 -0400
Begin forwarded message: From: Richard Wiggins <richard.wiggins () gmail com> Date: June 28, 2005 2:57:10 PM EDT To: David Farber <dave () farber net> Cc: eekid () aol com Subject: Re: [IP] more on Could GM, Microsoft End Up in Chinese Hands? Reply-To: Richard Wiggins <richard.wiggins () gmail com> Dave, In the grand scheme of things, $1.25 billion is a VERY small number for such an acquisition. Some perspective: -- Google's market capitalization is now $85 billion. See http://www.nytimes.com/2005/06/28/technology/28google.html -- General Motors, which actually makes things, has a market cap of $18 billion or so.-- Verizon and Qwest are wrangling over an $8.5 billion deal to buy MCI.
-- IBM's revenues for 1Q 2005 were $22.9 billion. -- The war in Iraq has cost taxpayers at least $300 billion. In context, the Lenovo deal to buy IBM's consumer PC business was a wash -- a non-story. IBM might as well have just deeded the PC biz to Lenovo for free. /rich On 6/28/05, David Farber <dave () farber net> wrote:
Begin forwarded message: From: malin () cs cmu edu Date: June 28, 2005 10:02:28 AM EDT To: dave () farber net, eekid () aol com Subject: Re: [IP] Could GM, Microsoft End Up in Chinese Hands?Lenovo Group Ltd.'s agreement in December to buy the personal computer business of International Business Machines Corp. for $1.25 billion was the first sign China is becoming rapidly more internationally acquisitive.Maybe this is an indicator of China's rise, but let's be clear. IBM soldthe personal computing component, not because Lenovo made it a juicyoffer, but because it was severely dragging down their profit- margin. As IBM has confirmed, they are retooling themselves to be a services company.Thus the purchase of PriceWaterhouse Coopers several years ago... -brad ------------------------------------- You are subscribed as galler () umich edu To manage your subscription, go to http://v2.listbox.com/member/?listname=ipArchives at: http://www.interesting-people.org/archives/interesting- people/
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