IBM News

IBM ($IBM) is due to report its earnings tomorrow. The company just released this cryptic statement:

ARMONK, N.Y.–(BUSINESS WIRE)–

IBM (IBM) will make a major business announcement and separately release its third-quarter 2014 earnings results on Monday, October 20 at 7:00 a.m. EDT.

Martin Schroeter, IBM senior vice president and chief financial officer, will host the company’s quarterly earnings conference call on Monday, October 20 beginning at 8:00 a.m. EDT.

The Webcast may be accessed via a link at http://www.ibm.com/investor/events/earnings/3q14.html.

Now Bloomberg is reporting that IBM is paying Globalfoundries Inc. $1.5 billion to take on their money-losing chip-making business.

IBM will also receive $200 million worth of assets, making the net value of the deal $1.3 billion, said the people who asked not to be identified because the plan is private. The companies plan to announce the deal tomorrow morning, the people said. IBM put out a statement today saying it planned to make a “major business announcement” tomorrow at 7 a.m. New York time.

After months of on-again, off-again talks, IBM Chief Executive Officer Ginni Rometty struck a deal to jettison the chipmaking unit, which has been a drag on earnings. Globalfoundries, owned by an investment arm of the government of Abu Dhabi, is taking on the unit to tap the expertise of its engineers in the fundamentals of semiconductor design and manufacturing.

Posted by on October 19th, 2014 at 5:59 pm


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