FIVELenovoIBM Lends a Hand

When was the last time you saw a successful acquisition or merger in the computer industry?

—Michael Dell, founder and CEO of Dell, Inc.

ON DECEMBER 7, 2004, Lenovo, China’s top computer company, astonished the world with the announcement that it was acquiring IBM’s personal computer division for $1.75 billion. It appeared to be an exceptionally bold move for a relatively young Chinese company and a sign of its determination to extend its global reach. Fang Xingdong, the chairman of and a well-known pundit on information technology issues, called it “a magnificent acquisition.” He added, “The new Lenovo becomes a major global player in the PC industry overnight.” Fang predicted that Lenovo would be getting ...

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