Feb 19, 2021 - Economy & Business
IBM considers sale of Watson Health
IBM (NYSE: IBM) is considering a sale process for its Watson Health business, with both private equity and SPACs viewed as options, per multiple media reports.
Why it matters: This reflects how CEO Arvind Krishna is willing to drop weighty baggage as he aims IBM at the cloud, where rivals like Amazon and Microsoft are miles above.
- Watson Health generates around $1 billion in annual revenue but isn't profitable.
The bottom line: "Watson was one of IBM’s highest-profile initiatives in recent years and a big bet on the growing healthcare sector, though results disappointed in part because physicians were hesitant to adopt artificial intelligence," The Wall Street Journal writes.