Lenovo, the world’s No. 1 manufacturer of personal computers, may try to strengthen its lineup by acquiring the gaming notebook business of Taiwan-based Micro-Star International, sources say.
Digitimes, which covers Lenovo and the PC industry very aggressively in Taiwan and China, reported Friday that sources it didn’t name said a deal was possibly in the works. The rumors came from “supply chain makers.”
PC sales have declined worldwide, but Lenovo has continued to increase sales and market share.
Gaming PCs have bucked the sales decline trend, however, and also pack a higher profit margin, thus making M<SI’s group an attractive target, DigiTimes said.
For example, a top-end Alienware gaming PC lists for more than $4,500, a review of ecommerce sites by WRAL techWire found.
Lenovo chair and CEO Yang Yuanqing is diversifying Lenovo away from reliance on PCs, spending more than $5 billion in 2014 to acquire the x86 server business of IBM and Motorola Mobility from Google. However, he also says PCs remain Lenovo’s “bread and butter.”
MSI did deny the report. The company is a client of Lenovo.
“The sources noted that Lenovo is looking to raise its competitiveness in the gaming notebook industry and acquiring MSI would be the fastest way to achieve the purpose,” DigiTimes said.
Negotiations are underway, the paper added.
Lenovo operates its executive headquarters in Morrisville.
Read more at: http://www.digitimes.com/news/a20150515PD208.html
