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IBM wants to flog Watson Health

by on22 February 2021

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IBM is exploring a potential sale of its IBM Watson Health business according to the Wall Street Journal.

The move is part of Big Blue’s moves to streamline the company and become more competitive in cloud computing.

IBM is studying alternatives for the unit that could include a sale to a private-equity firm or industry player or a merger with a blank-check company, the people said.

The unit, which employs artificial intelligence to help hospitals, insurers and drug makers manage their data, has $1 billion in annual revenue and isn't currently profitable, the people said. Its brands include Merge Healthcare, which analyses mammograms and MRIs; Phytel, which assists with patient communications; and Truven Health Analytics, which analyses complex healthcare data.

It isn't clear how much the business might fetch in a sale, and there may not be one. IBM, with a market value of $108 billion, has been left behind as cloud-computing rivals Microsoft and soar to valuations more than 10 times greater.

Big Blue said it's focused on boosting its hybrid-cloud operations while exiting some unrelated businesses.

Last modified on 22 February 2021
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