Message from IBM concerning the Lenovo buyout

I received this email from IBM last week concerning the Lenovo buyout. I think it was probably sent out to all registered Thinkpad owners, but I thought it would be good to post it here for potential thinkpad owners who are worried about the buyout and how it will affect it's product.

Here is the text from that message.

December 16, 2004

Dear Valued Customer,

I wanted to let you know about a game-changing development in the technology industry. Last week IBM announced an agreement with Lenovo, the leading information technology company in China, under which Lenovo will acquire IBM’s Personal Computing Division and create a powerful new global leader in the PC industry. The new company brings together the industry-leading technologies and lowest-cost-of-ownership advantages of IBM’s storied PC division with Lenovo’s undisputed PC leadership in the world’s fastest-growing economies. The new Lenovo will have the scale and intense focus to provide you with ever-greater value in personal-computing technologies.

We are confident that IBM’s close alliance with Lenovo will allow the new Lenovo to meet or even exceed your expectations for PCs that deliver real value and productivity for your company or individual needs. IBM customers will still have access to the world’s finest PCs integrated into end-to-end, on demand solutions.

The new business – with its powerful brand names, balanced portfolio of offerings, leading R&D capabilities and 19,000 employees – will be the world’s third-largest PC competitor, with combined annual revenue of approximately $12 billion. The new Lenovo will have its worldwide headquarters in New York, with principal operations in Beijing, China, and Raleigh, N.C., sales offices in every geography, and research centers in China, the U.S. and Japan.

IBM will assume an equity position in Lenovo, and will be the preferred supplier of service, support, and financing for the new Lenovo. The CEO of the new company will be Steve Ward, who is currently the senior vice president and general manager of IBM’s Personal Systems Group.

In terms of your relationship with IBM, nothing will change for the next few months while the transaction is concluded. And after that, IBM and the new Lenovo are committed to work together as one, integrated team to meet your needs. In most cases, the new combined IBM/Lenovo team will be the same people you’ve been working with at IBM to date.

The close alliance between the new Lenovo and IBM means you can expect all the advantages IBM PCs have today to get better. IBM and the new Lenovo will continue to provide PC products and services that deliver the best-in-class value you expect: The PC product roadmap will not change for 18 months under the new company. The new Lenovo will continue to make ThinkPad mobile and ThinkCentre desktop PCs with the IBM brand. The new company will bring all of IBM’s PC research, development, design, and manufacturing capabilities together with those of Lenovo.

We expect the transaction with Lenovo to be concluded sometime early in 2005. We will continue to keep you updated with additional information, as it develops. In the meantime, please refer to the official announcement and press release from IBM and message from Steve Ward at: http://www.pc.ibm.com/ww/announcement.html

The new Lenovo moves our PC business to a new footing and gives it the independence, focus, and scale needed for us to be able to deliver even better PC products and services. You have IBM’s commitment to make good on that promise.

Sincerely,

Charles E. Leyrer
Vice President, IBM PCD Marketing



"They who would give up an essential liberty for temporary security, deserve neither liberty or security" (Ben Franklin)
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this is reassuring that IBM is being very open and obviously are very aware of concerns people have. It seems to me both of these companies are going to be working hard together to disprove the naysayers.

Check out this article about Lenovo trying their darndest to fit into their new IBM group:

http://www.nytimes.com/2004/12/25/business/worldbusiness/25lenovo.html

The Chinese workers are even starting to celebrate co-workers birthdays by giving out cake, and the Chinese don't traditionally celebrate personal birthdays -- name days are bigger. They're doing it all in the name of trying to become like their American cohorts!