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

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.

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.

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