IBM to pay $1.5bn to offload its loss-making chip business October 20, 2014 - 16:06 AMT PanARMENIAN.Net - IBM is to pay $1.5bn in cash to offload its loss-making chip manufacturing division to Abu Dhabi sovereign wealth fund GlobalFoundries, according to BBC News. IBM, which wanted to avoid the cost of upgrading the unit's technology, said it would now focus on cloud computing, mobile and big data analytics. IBM will take a $4.7bn charge in the third quarter as a result of the sale. GlobalFoundries said it would offer jobs to all IBM employees affected. "This acquisition enables IBM to focus on fundamental semiconductor and material science research, development capabilities and commitment to delivering future semiconductor technologies," said IBM senior vice president and director of research Dr John Kelly. IBM will spread the $1.5bn payment to GlobalFoundries over the next three years. Under the terms of the deal, GlobalFoundries will get intellectual property and technologies related to the chip business. IBM's shares rose slightly in pre-market trading. The firm is due to report its third-quarter earnings later on Monday, Oct 20. Related links:   Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020."   Partner news Most popular in the section |  Latest news Pashinyan’s spokesperson denies intention to visit Baku for COP29  Pashinyan’s agenda doesn’t include a trip to Baku for the COP29 conference, his press secretary Nazeli Baghdasaryan has said.Russia accuses West of preparing invasion of CSTO countries NATO is preparing an invasion of the CSTO countries, the number of provocations in the air is growing, Sergei Shoigu has said.Lithuania sending €100,000 to help Armenia fight floods consequences Armenian Prime Minister Nikol Pashinyan took to social media to thank his Lithuanian counterpart for the contribution.Armenia: Rescue workers restore pedestrian bridge for flood-hit community Rescue workers on Wednesday, June 5 restored a pedestrian bridge in the town of Alaverdi in Armenia’s north. |
