International Business Machines Corp. (IBM) may be selling their low-end server business

Posted Jan 20, 2014

International Business Machines Corp. (NYSE:IBM) is interested in selling their low-end server business, according to sources with The Wall Street Journal. One of the the interested buyers is Dell Inc.  Dell is the third largest server vendor based on revenues following IBM and HP.

This is not the first time that IBM recently considered selling a server business. Last year, IBM and Lenovo Group were in talks over the x86 server business. Those talks fell through because Lenovo was valuing the operation at below $2.5 billion. Lenovo had previously acquired IBM’s personal computer division.

IBM did not reveal their revenues for the x86 server division, but Morgan Stanley estimated that this business generated $4.9 billion out of IBM’s $15.4 billion in server sales in 2012.