According to a Financial Times report on Friday, I.T. giant International Business Machines Corp. (IBM
) is considering selling its chip-making division.
Reportedly, the company isn’t dead set on selling the unit, but it is in early exploratory stages. This news comes on the heels of IBM’s decision to sell its low-end server business to Lenovo. The report also indicates IBM has hired Goldman Sachs to advise the firm on a potential deal.
Potential Buyers at Home and Abroad
It’ll be Goldman’s job to come up with a valuation of the semiconductor unit and negotiate with potential suitors. Analysts see a number of possible fits, including Intel Corp (INTC) (USA), Samsung (Korea), Taiwan Semi (Taiwan), and GlobalFoundries (USA). IBM is reportedly also open to a non-sale partnership for the unit, or other ways to extract value from the business. Regardless of the deal structure, it’s likely that IBM would look to retain the rights to access the latest chips.
IBM’s Share Price Performance
IBM shares rose $1.35, or 0.8%, in pre-market trading Friday. The stock has fallen nearly 7% year-to-date, driven mainly by its disappointing Q4 earnings results, which were delivered last month.
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