IBM will pay $1.5 billion to Globalfoundries in order to shed its costly chip division.
IBM will make payments to the chipmaker over three years, but it took a $4.7 billion charge for the third quarter when it reported earnings Monday.
The company fell short of Wall Street profit expectations and revenue slid 4 percent, sending shares down 8 percent before the opening bell.
Privately held Globalfoundries will get IBM’s global commercial semiconductor technology business, including intellectual property and technologies related to IBM Microelectronics. It also gets IBM’s semiconductor manufacturing operations and plants in East Fishkill, New York and Essex Junction, Vermont, as well as access to thousands of patents and IBM’s commercial microelectronics business. Read more…
IBM Paying $1.5 Billion to Shed Its Chip Division
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