IBM was willing to pay $1bn to offload chip business

Summary:So keen was IBM to get rid of its failing chip-manufacturing business that it was willing to pay handsomely for Globalfoundries to take it — but not at any price.

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Globalfoundries: reportedly wanted $2bn from IBM. Image: Globalfoundries

IBM CEO Ginni Rometty is desperately trying to offload loss-making businesses, but she is not so desperate that she will pay any price.

That became apparent when it emerged that IBM was willing to pay chip-maker Globalfoundries $1bn to take the business off its hands.

IBM's chip-making unit reportedly loses as much as $1.5bn a year and Globalfoundries was asking for $2bn, but Rometty said no.

These facts were revealed by a source "familiar with the process", according to Bloomberg.

Meanwhile, Rometty is doing her best to get IBM back into positive growth territory after more than two years — nine quarters — of falling revenues.

Globalfoundries has made no secret of the fact that its primary interest in buying the business was the intellectual property and the people — skilled IBM engineers.

Further reading

Topics: IBM, Processors

About

Colin has been a computer journalist for some 30 years having started in the business the same year that the IBM PC was launched, although the first piece he wrote was about computer audit. He was at one time editor of Computing magazine in London and prior to that held a number of editing jobs, including time spent at the late DEC Compu... Full Bio

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