[IP] more on Could GM, Microsoft End Up in Chinese Hands?
Begin forwarded message:
From: Richard Wiggins <richard.wiggins@xxxxxxxxx>
Date: June 28, 2005 2:57:10 PM EDT
To: David Farber <dave@xxxxxxxxxx>
Cc: eekid@xxxxxxx
Subject: Re: [IP] more on Could GM, Microsoft End Up in Chinese Hands?
Reply-To: Richard Wiggins <richard.wiggins@xxxxxxxxx>
Dave,
In the grand scheme of things, $1.25 billion is a VERY small number
for such an acquisition. Some perspective:
-- Google's market capitalization is now $85 billion. See
http://www.nytimes.com/2005/06/28/technology/28google.html
-- General Motors, which actually makes things, has a market cap of
$18 billion or so.
-- Verizon and Qwest are wrangling over an $8.5 billion deal to buy
MCI.
-- IBM's revenues for 1Q 2005 were $22.9 billion.
-- The war in Iraq has cost taxpayers at least $300 billion.
In context, the Lenovo deal to buy IBM's consumer PC business was a
wash -- a non-story. IBM might as well have just deeded the PC biz
to Lenovo for free.
/rich
On 6/28/05, David Farber <dave@xxxxxxxxxx> wrote:
Begin forwarded message:
From: malin@xxxxxxxxxx
Date: June 28, 2005 10:02:28 AM EDT
To: dave@xxxxxxxxxx, eekid@xxxxxxx
Subject: Re: [IP] Could GM, Microsoft End Up in Chinese Hands?
Lenovo Group Ltd.'s agreement in December to buy the personal
computer business of International Business Machines Corp. for $1.25
billion was the first sign China is becoming rapidly more
internationally acquisitive.
Maybe this is an indicator of China's rise, but let's be clear. IBM
sold
the personal computing component, not because Lenovo made it a juicy
offer, but because it was severely dragging down their profit-
margin. As
IBM has confirmed, they are retooling themselves to be a services
company.
Thus the purchase of PriceWaterhouse Coopers several years ago...
-brad
-------------------------------------
You are subscribed as galler@xxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-
people/
-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-people/