International Business Machines Corp. is currently considering a possible sale of its IBM Watson Health business, according to those familiar with the matter, as the tech giant’s new executive director seeks to streamline the company and become more competitive in cloud computing.
IBM, + 0.63%
is currently exploring alternatives for the entity that could include a sale to a private equity firm or industry player, or a merger with a blank check company. The entity, which uses artificial intelligence to help hospitals, insurers, and drug makers manage their data, has around $ 1 billion in annual sales and is currently unprofitable.
Its brands include Merge Healthcare, which analyzes mammograms and MRIs. Phytel, which helps with patient communication; and Truven Health Analytics, which analyzes complex health data.
It’s not clear how much the company could make in one sale, and there may not be one.
IBM, valued at $ 108 billion, was named as cloud computing rival Microsoft Corp. left behind.
and Amazon.com Inc.
AMZN, + 0.59%
rise to more than ten times higher ratings. The Armonk, NY company has stated that it is focused on improving its hybrid cloud operations while leaving some unrelated companies.
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