IBM is getting closer to a deal for its semiconductor manufacturing unit with GlobalFoundries. IBM has been attempting to unload this unit, which loses up to $1.5 billion each year. GlobalFoundries is emerging as the most likely takeover candidate over other interested parties, such as Intel and Taiwan Semiconductor Manufacturing. The most valuable parts of the troubled IBM unit are its engineers and intellectual property. GlobalFoundries isn't very interested in IBM's manufacturing plants because it has its own modern facilities. Who gets to control what intellectual property will determine almost everything about this deal, including the price. IBM initially asked for more than $2 billion and potential bidders said they would be willing to pay half of that. In any case, the price has a lot of room to fluctuate depending on how much intellectual property IBM is willing to include.

If you liked this article you might like

Five-Day Winning Streak in Stocks Expected to Continue

Five-Day Winning Streak in Stocks Expected to Continue

Bitcoin Today: Prices Burst Through $10,000 as Traders Mitigate Stark Warnings

Bitcoin Today: Prices Burst Through $10,000 as Traders Mitigate Stark Warnings

Apple Stock Is Being Bought by Warren Buffett; Should You Buy It?

Apple Stock Is Being Bought by Warren Buffett; Should You Buy It?

Apple Could Get to Zero Net Cash This Way, Says UBS

Apple Could Get to Zero Net Cash This Way, Says UBS

Why You Cannot Rule Out a Much Deeper Stock Market Correction

Why You Cannot Rule Out a Much Deeper Stock Market Correction