IBM to pay Globalfoundries $1.5 billion to take chip unit

[Wireless News]

http://l3.yimg.com/bt/api/res/1.2/yTJvAcrZt.b6X28X5Wkdsg--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTg2O3E9NzU7dz0xMzA-/http://media.zenfs.com/en_us/News/Reuters/2014-10-20T110830Z_1006950003_LYNXNPEA9J09W_RTROPTP_2_CBUS INESS-US-IBM-DIVESTITURE.JPG (http://news.yahoo.com/ibm-pay-globalfoundries-1-5-billion-chip-unit-035604824--finance.html)By Abhirup Roy (Reuters) - IBM Corp said it would hive off its loss-making semiconductor unit to contract-chipmaker Globalfoundries Inc to focus on cloud computing and big data analytics. IBM will pay Globalfoundries $1.5 billion in cash over the next three years to take the chip operations off its hands, the companies said in a statement on Monday. IBM took a related pre-tax charge of $4.7 billion in its third quarter. It also reported a 4 percent drop in revenue on Monday, hurt by weak sales in its software and services businesses. IBM's shares fell 8 percent to $167 in premarket trading. ...



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