Split makes IBM a 60 billion $ turnover company. So maybe a buy out of 150 billion would get it. Maybe.
It’s a ripe company to buy i think
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The magic 8 ball says “looks promising” AK has the board told you how good of a job you are doing destroying shareholder value? You have lost money faster than Ginni Congrats Does Harvard teach that, or do you guys just pick this up on your own.
It's human nature to be selfish, looking after his/her own interest. The thing is that the corporate culture and incentive structure are so toxic and distorted that the selfishness of the decision makers ended up hurting the interest of all other parties: the employees, the customers, and eventually the shareholders. Guess such a company deserves to die.
As you say, it is all about senior executives pocketing more money... They don't care about IBM, only care about their money. If they see that selling IBM will make them more money they will do that.... and it is probably what they are planning!
Interesting take. It reminds me of a "starve the beast" approach. You shrink a business by not investing it till it's small enough to be sold. This was what happened to the semiconductor division. But it was overdone so eventually ibm had to pay an extra $1B to GF the buyer. But comparing to the normal $1~2B/year to upkeep a semi foundry , it's cheaper. The customers moved on, the employees were whacked and the consulting financial firms and lawyers pocketed their fees. I wonder how many senior execs got extra bonuses because of the deal.
The stock price has been crashing... AK announced the split and trumpeted that the stock price went up to $142.... look at where the stock is today, $114... The stock is set to at least retest this year low of $90... who knows what can happen from there!
Nobody wants to buy all of IBM. They could easily find a buyer for GBS, another buyer for RH, another for Power and storage, piecemeal off most of their software portfolio, and just have Z and it's associated software become a standalone. A breakup like that is more likely than a single buyer.
150 billion would most likely get it YES it depends on where IBM allocates the debt and how the marketplace values each piece. Spinning off Newco was nothing more than showing the marketplace that IBM is for sale (you get to pick which piece you want) IBM doesn’t want to pay any taxes if Newco goes, so look for something creative. If someone bids on IBM, look for a stock swap. If you don’t think folks are looking, you are not paying attention. IBM is chipping away at the legacy costs and the more it chips, the more attractive it looks. As Forbes said spruce the old girl up for the eventual sale