Report: IBM-Lenovo server sale negotiations have hit a wall

Summary:IBM and Lenovo have been publicly silent over reported talks over the server business -- and they might never say anything about the matter now.

IBM has reportedly been talking to Lenovo about selling its x86-based server business to the PC maker for some time now -- but those talks might have hit a wall.

Fortune reported on Wednesday that negotiations over the potentially multi-billion dollar sale have broken down, based on feedback from unnamed sources said to be familiar with the situation.

That doesn't mean the deal is never going to happen. After all, Lenovo and IBM have quite a history considering the Chinese computer company bought up IBM's PC unit several years back.

It also might be in Lenovo's best interest to expand its repetoire and pick up the more enterprise-focused server segment given the way the PC industry is headed right now .

Fortune also pointed out that should Lenovo pick up the x86 business, it would put it more on par with the likes of Dell and HP rather than Oracle.

Rumors that about talks between IBM and Lenovo over the server business started sprouting up in mid-April .

However, neither Lenovo nor IBM have commented publicly on the matter -- and don't expect anything more from either tech giant unless talks resume and the sale becomes official.

Topics: Tech Industry, Hardware, IBM, Lenovo, Servers

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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