The Lenovo IBM Deal

Wharton School of the University of Pennsylvania posted an interesting editorial on the sale of IBM's PC business to China's Lenovo Group. This is a big announcement for China becoming a dominant player in the world of big business! Hopefully, Lenovo do a much better job in the ever increasing competitive space with leading brand & global distribution network coupled with low cost manufacturing.

But, I wonder, is growth in the PC business over? Has the industry consolidated to the point that these 3-4 brands will only compete for this commodity on price? I doubt it, I think there's still a lot of room for innovation and growth. Broadband access has only begun to materialize and IPv6 is going to pave the way for every device to become networked, a PC-like box/monitor in every room in every house around the world. IBM may have given up a business & platform that it shouldn't have. I guess we'll see.

Where were the major private equity players in this deal? I'm surprised KKR, Goldmach Sachs, Blackstone, Apax, Carlyle, TPG, Silver Lake, or Clayton, Dubilier & Rice didn't get involved.