https://money.usnews.com/investing/news/articles/2020-11-05/carl-icahn-boosts-xerox-stake-to-over-14
10 replies (most recent on top)
Xerox will be broken up , no one wants it as it is. My guess the brand will go on , but will be a very tiny software company , everything else will be sold off to other office companies.
@TTX , post below: not just the technology agreement end on 31 Mar. The 20% FX entity stake owned by Xerox also goes and so FX no longer contributes to Xerox Revenue and Earnings. There is no new revenue or earnings stream from 31 Mar onwards as there is no Asia business set up by Xerox today and plans are in place to end everything.
Yes, FX product continues to be sold to Xerox but the pricing will be Different and most are already more than 4 years old.
"With Fuji Xerox no longer partner Xerox after 31 March"
I don't think you understand what that means. Consider:
https://www.businesswire.com/news/home/20200105005090/en/Fuji-Xerox-to-End-Technology-Agreement-with-Xerox-Corporation-on-Scheduled-Expiration-Date
Don't confuse the Technology Agreement, which is ending, with the product supply agreement, which is not. Xerox will continue to buy product from the new FUJIFILM Business Innovation Corp., and will continue to sell that product just like they do today.
The Technology Agreement is outside of, and separate from, that bit of business.
The Technology Agreement is ending because, frankly, they no longer share technologies. All that Rochester goodness, Xerox has thrown down the drain–and they have nothing to offer Fuji. Fuji has spent the last 20 years developing its own technologies, independent of Xerox, and the end of the Technology Agreement simply codifies that to the world.
I see no path forward for Xerox going into 2021 for recovery. With Fuji Xerox no longer partner Xerox after 31 March, the contribution from Asia for both revenue and profit will be off by 30%. And in the meantime, CI is not releasing any new product to replace FX product and he just closed down the Asian team with no plan to engage Asia after FX departure.
The bottom line is that the only way out for Xerox to make a major move very soon like selling the company to someone who just needs the US and European market. More like some office automation company from China. Let's see....
Totally agree...
Xerox "as we know it" has been gone for a decade or more already
Carl Icahn's Method of Operation has always been about gaining control over the company to promote getting "his way" which equates to selling/breaking up the company for his net profit first and the share holders second. Where the company ends up after all this has never been a concern of his. Prime examples are Pan American and Hertz. He did away with Pan American and is almost at the end of the road with Hertz. No successful business person buys stock at the peak unless "control" is the prime goal. This could go on for months or years...This more than likely is the end for Xerox as we all have known it...Keep in mind everyone said Pan American and Hertz as big as both were would have ever been one of Carl Icahn's "projects" yet he did both of them in at a high profit for him and the shareholders!
No one cares!
Just be done with it already.
Is he in just for the dividend? Or CI knows something big is about to happen.