DTEJD1997 Posted January 30, 2020 Share Posted January 30, 2020 How much debt will IBM have upon closing the acquisition? Current depressed market cap is only about $110BB. The acquisition is about 1/3 of the company. If the Red Hat deal is as bad is it seems, at least to most of us here, given the price and use of borrowed funds to pay that price, the market cap may not be depressed, it may be inflated. It is how Rometty can keep her big paychecks coming for a few more years. The acquisition needs time to come to fruition. Ain't no more big paychecks going to be coming to Rometty? She is OUT in April. I wonder if she could feel any more stupider with IBM stock being up BIGLY in after hours trading? Stock goes up on news of your ouster? The RedHat deal was so bad....Rometty was like a village idiot getting rolled on the way to market, selling the milk cow for "magic beans". She won't be missed. Link to comment Share on other sites More sharing options...
K2SO Posted January 31, 2020 Share Posted January 31, 2020 The RedHat acqusition was expensive but in the long run it may be what returns IBM to relevance. Link to comment Share on other sites More sharing options...
LC Posted January 31, 2020 Share Posted January 31, 2020 Gini was terrible and I'd wager the driving factor behind the RH acquisition was to maintain IBM (and her management team's) relevance. That said, it IS the only thing keeping them relevant. Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 8, 2020 Share Posted October 8, 2020 spin https://www.ibm.com/investor/att/pdf/IBM-Strategic-Update-2020-Press-Release.pdf IBM TO ACCELERATE HYBRID CLOUD GROWTH STRATEGY AND EXECUTE SPIN-OFF OF MARKET-LEADING MANAGED INFRASTRUCTURE SERVICES UNIT Link to comment Share on other sites More sharing options...
Broeb22 Posted October 9, 2020 Share Posted October 9, 2020 Can someone explain to me in plain English what products or services the two new companies will provide? I always struggle with these tech consulting-type businesses because they describe themselves with more buzzwords than I thought was possible. How are the two businesses different? https://www.ibm.com/investor/att/pdf/IBM-Strategic-Update-2020-charts.pdf Link to comment Share on other sites More sharing options...
Jurgis Posted October 9, 2020 Share Posted October 9, 2020 @Broeb22: my simple solution is to ignore this. 8) Like HP split, I think it's gonna produce two crap companies from one crap company. Though it's possible that one of the pieces will do Nadella and go multibagger. It's hard to predict for me though. Good luck for people who can foresee what will happen. To answer your question, I think one piece will provide cloud + related services and software. Plus probably the legacy hardware business, etc. The other piece will be pretty much consulting arm. It's not a very natural split because the consulting arm will start drifting away from pure IBM solutions and the cloud arm will start growing its own consulting teams. But hey, that's what they decided. Even though I think both pieces are mediocre, both will likely do OKish unless really mismanaged. Not at the level I'd be interested to dig into and invest though. FWIW. I'm not an enterprise cloud and consulting expert. Link to comment Share on other sites More sharing options...
KCLarkin Posted October 9, 2020 Share Posted October 9, 2020 Can someone explain to me in plain English what products or services the two new companies will provide? No clue. And the fact that they can't explain this to me (who understands both IBM and tech jargon), explains why they continue to struggle. As Jurgis says, it sounds like they are just splitting off part of the consulting business. What a clown show. Link to comment Share on other sites More sharing options...
Broeb22 Posted October 9, 2020 Share Posted October 9, 2020 Can someone explain to me in plain English what products or services the two new companies will provide? No clue. And the fact that they can't explain this to me (who understands both IBM and tech jargon), explains why they continue to struggle. As Jurgis says, it sounds like they are just splitting off part of the consulting business. What a clown show. Thanks for the insight, or at least affirmation. I probably will take Jurgis' suggestion and ignore this, but sometimes I can't help but get some mental reps in on these spins. I've had decent success with some spinoffs that all had some hair on them (KEYS, CSWI, CARR) but this one feels more like a pass. Link to comment Share on other sites More sharing options...
coc Posted October 9, 2020 Share Posted October 9, 2020 Thoughts from Chanos on this: (edit:fixed with correct link) Link to comment Share on other sites More sharing options...
KCLarkin Posted October 9, 2020 Share Posted October 9, 2020 I've had decent success with some spinoffs that all had some hair on them (KEYS, CSWI, CARR) but this one feels more like a pass. No problem with spins if there is clear rationale, but they can't even communicate a clear rationale let alone execute one. Link to comment Share on other sites More sharing options...
Xerxes Posted October 12, 2020 Share Posted October 12, 2020 They are spinning off Red Hat after a year of holding it and calling it IBM. The new co with legacy stuff will probably called Blue Hat. That is kind of how I am seeing it in my my simplified world. I think Oracle move with TikTok was bolder than this. Link to comment Share on other sites More sharing options...
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