"The [PC] business has a history of recurring loses, negative working capital, and an accumulated deficit. The ability to settle obligations as they come due is dependent on IBM funding the operations on an ongoing basis."I think I'm starting to get a better picture of this transaction. But, I still wonder (certainly much like Lenovo) if a turnaround is easily feasible, especially with lower cost manufacturing in China.
In a filing with the Securities and Exchange Commission, IBM, which hadn't broken out its PC division's results in recent years, revealed that the business had racked up $965 million in losses between Jan. 1, 2001, and June 30, 2004. The the filing: