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IBM Might Sell Watson Health for $1 Billion

IBM has roughly spent about $4 billion building up health care infrastructure by acquiring other brands such as Truven Analytics, Phytel, etc.

Watson Health to be sold at $1 Billion by IBM

The healthcare division of IBM, Watson Health, will most likely be sold by the brand in the near future. The healthcare solution subsidiary has been built by IBM by acquiring various companies, and it amasses approximately $1 billion in revenue. IBM is looking to sell it at a similar value.

While IBM has not made any official statements, back in 2021 the brand did seek out customers for Watson Health. The primary contender was Morgan Stanley. As of now, Watson Health provides health care data and analytics, population health, and medical imaging solutions. IBM has roughly spent about $4 billion building up this infrastructure by acquiring other brands such as Truven Analytics, Phytel, etc.

However, as per reports, the subsidiary company is not performing as well as expected. While the revenue figure stands at a billion, total profits are not up to IBM’s standard. Hence, the tech giant reached out to BoFA Securities in order to find a buyer. This process was initiated in late 2021, and IBM is reportedly going to pick the winner soon.

While none of this has been confirmed by IBM, last year the CEO did point towards dissatisfaction at Watson Health’s returns. Certain sources claim that the profit levels of the subsidiary are so low that it’s continuously losing money. However, the brand valuation at $1 billion stands to be true as that is the official revenue generated.

No news about prospective buyers has yet been made public. But, it can be expected that Morgan Stanley will likely take over the reins as they were the leading name in the process. Healthcare technology is a booming industry, and something built from the ground up by IBM is bound to perform well under the right guidance.

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