#split

Long-time reader, first-time posting. I was planning to post yesterday only, but I just came back from travel.

After yesterday’s town hall, I am still having many questions. It answered many things, but not the questions most people were actually asking. There were plenty of buzzwords and positive statements, but not much real clarity.

I am still not understanding the Alderon split properly. What will remain with IBM? What will move to Alderon? On what basis these decisions are being taken? Even after the town hall, I don’t have a better understanding.

Also, it looked like the usual favorites are getting special treatment. From what I could understand, many of those people will remain with IBM, while everyone else is still not knowing what will happen with their future. Maybe there are valid reasons behind these decisions, but they were not explained clearly.

Just wanted to know what others are thinking. Did this town hall give you more confidence, or did it leave you with even more questions? Are you feeling more secure about your job after listening to it? Interested to hear everyone’s thoughts and opinions

Anyone else think that Fiserv as a whole will just be swallowed by a competitor since we are cheap right now? Or selling First Data and splitting the company back into two would be better?

Are ISC under new Honeywell split is going to finish ? Heard there are savings ongoing on transport goods within UK- EU and USA-EU going worldwide. What was the point to make IA and promising future when sites are going to closure ?

This is yet unoffical but there will be a meeting today with 3 upcoming news:

• everyone will be fired by the end of August and replaced with offshore employees (.not high management )
• company will be splited by 4 or 5 independent companies ( by region ) and FIS brand will disappear by end of this year.

Heard this from multiple sources: they are just waiting for the split, and as soon as that’s over, the cuts will be DEEP.

What will happen to earned but not commenced pensions if HW is split up and sold off?

With the split and not technically working for att will there be a new forum for forged?

Were there any indications from the earnings call?

The Verizon Split: A ServCo/NetCo Divorce Threatened by an Outsourcing Anchor
Verizon's strategic push to separate its core business into two entities—a customer-facing ServCo and a network-operating NetCo—is a widely publicized move aimed at unlocking significant shareholder value and slashing $10 billion in operating expenses (OpEx). While structurally sound in theory, internal echoes suggest the entire separation plan is at risk of being operational chaos due to a critical pre-existing flaw: the poorly performing $2.1 billion Managed Network Services (MNS) contract with HCLTech (HCL).
This separation is not a fresh start; it is a complex IT and process de-integration effort that is being attempted while a core operational function is under external distress.
(....)

1. Amplified Operational Chaos in the Split
   The HCL underperformance is an anchor dragging down the separation process itself:
   Increased IT Migration Costs: A structural split necessitates the clean de-coupling of legacy IT systems. If HCL manages key operational platforms (e.g., MNS systems) but lacks sufficient documentation or operational control, the process of separating and replicating those systems between the new ServCo and NetCo becomes slower, more complex, and pushes the one-time separation cost (estimated at ∼$1-2 billion) higher.
   A Crippled ServCo: The new ServCo requires a seamless hand-off to HCL for its post-sale support model. If this model is already shaky, ServCo’s initial business processes—built on this flawed assumption—will be unstable. This handicaps the ServCo’s agility and customer experience from its first day of independent operation.
2. Workforce Strategy and the Risk of "Brain Drain"
   For the remaining workforce, the situation is characterized by deep distrust and volatility:
   More Internal Turmoil: Employees facing layoffs or transition will have zero confidence in the quality or stability of the outsourced HCL entity. This increases the risk of the most valuable, experienced employees choosing to quit prematurely rather than participate in the chaotic hand-off, further exacerbating the "brain drain."
   Pressure to Shadow: Verizon leadership faces internal pressure to quietly keep high-value engineers in-house to "shadow" or "fix" HCL's work. This preserves short-term service quality but utterly defeats the separation’s core OpEx reduction goal.
   The successful separation of ServCo and NetCo depends entirely on a stable operational base. If the HCLTech partnership remains an underperforming, fixed-cost liability, it will not only undermine the expected cost savings but also significantly reduce the market valuation of the customer-focused ServCo, jeopardizing the entire value-unlocking thesis of the structural split.
   The company must effectively restructure or contain the HCL relationship before or during the separation, or risk the split becoming an exercise in formalizing operational distress.

The Only Way to Fix Verizon's Valuation: Apollo's Blueprint for Structural Separation

Probably 12000 FTEs will loose their jobs. (this already happened !!!)

The days of the integrated telecom giant are over. The biggest opportunity in the sector today isn't a new product; it's a structural divorce—separating the capital-intensive NetCo (Network) from the asset-light, growth-driven ServCo (Service).

This is no longer a fringe idea; it's the defining transformation trend of the decade, and it’s the most rational path to unlock billions in trapped equity value—especially for a stock like Verizon ($VZ).

The Problem: Blended Multiples Suppress Value
Integrated carriers suffer from a blended market multiple problem. The network's capital drag suppresses returns, while the dynamic service business is undervalued. The result? Chronically low P/E ratios and stagnant shares despite strong cash generation.
The Solution: Apollo’s Reverse LBO ServCo Play
Private Equity firms like Apollo Global Management are experts at complex carve-outs. Their blueprint for a newly-separated ServCo: a Reverse LBO that transforms a utility stock into a premium tech-enabled platform, commanding a 2x multiple expansion.

Phase 1: The Asset-Light Transformation (Years 1-2)
Digital-First Cost Structure: Replacing legacy IT with cloud-native BSS/OSS and using AI to overhaul customer service, driving a 20-30% OpEx reduction.
Pure-Play Aggregation: ServCo pivots entirely to the customer, bundling connectivity with high-margin services (security, streaming, IoT). Result: 5-10% ARPU increase and up to 25% churn reduction.

Deleveraging: Cost savings are rapidly converted into financial firepower to stabilize the balance sheet.

What are your thoughts ?
Light Reading Fierce Network
hashtag#Telecom hashtag#Verizon hashtag#PrivateEquity hashtag#Valuation hashtag#ApolloGlobalManagement hashtag#Strategy hashtag#StructuralSeparation

I'm hearing rumors that Fiserv is about to announce a split between Financial and Merchant? half goes Private Equity the other half gets purchased.

Oracle will split like IBM did into IBM and Kyndryl. OIC, OACS, Fusion, Cerner (already written off in LE's mind) will be lumped into a spin off company. Share prices might briefly drop much like IBM's, but LE will announce a larger AI deal which will help the share price recover.

Are we expecting the company to split?

Oracle stock blasting off makes no sense. Yeah, the $455B RPO number is huge, but at the end of the day those are just cloud contracts. You know the cost of servers, you know the markup — margins are fixed. A bump was fair once the number went public, but “to the moon” is pure hype.

And really, is OCI suddenly the backbone of AI forever? Training demand might look endless on paper, but inference is a different beast. Betting everything on infinite training cycles feels a lot like Sun Microsystems right before the dot-com bubble popped.

Conspiracy theory: it almost makes more sense if Oracle’s endgame is to split in two — legacy gets run as a lean cash cow, while shiny OCI+AI is set free to chase a PE ratio as inflated as Larry Ellison’s net worth. If someone scoops up the legacy side, they’d basically crown themselves undisputed king of enterprise software overnight.

What a sellout, how sad.

US has no choice but to help Intel turn around its business in the hope that it will provide chip manufacturing security against China. Without the full details of the stake, we can only speculate what stipulations the US gov’t has imposed on Intel, if not talks are still on going - but…IFS and ProdCo split is likely going to get more pressure. Chip manufacturing is US top priority, chip design is aplenty. This is a boon for IFS since the gov’t could help in many ways to get the customers it badly needs. For ProdCo, it cannot stand alone and it has to find a host to attach - hello Qualcomm!
But before this happens, big internal battle is being played out. NS will not concede without exhausting every tooth and nails. Good luck!