I heard some people speculating that Frank may be preparing to carve up the company and sell it off piece by piece. I dont know if this is at all true, but it would give credence to the fact that many senior people have been let go and given a severance package.
Any ideas?
Get rid of Cleartouch? Anyone outside of the Cleartouch circle has no idea how it works and have no interest in finding out how. Good luck with that.
AP is an interesting business case. Profitable in its current state but you start updating/upgrading all of those 16ish cores between bank and CU and that profit goes away pretty quickly. That is why they do slow incremental updates. Also extremely expensive from a data center equipment perspective. Good luck spinning them off and then telling them get out of Fiserv DC's and all of a sudden that is a 100M in expenses. Not to mention who is going to do all the work? It is not impossible but it would be expensive. What they really need to do is get down to about 6 total cores between bank and CU. No one has the guts to do that in CU, and on the bank side they need to get rid of Cleartouch.
No, it’s a dog with fleas. Blue Horseshoe lives Annacott Steel.
My opinion AP will be spun off no entity would buy the whole division. Possibly one or two cores could be attractive to sell outright.
The margins simply aren't there for AP. The running costs are high - even with the development of a core 'paid for', think about the yearly tax forms, Reg C/CC/D, etc. The margins max out at about 20%.
For other parts of Fiserv (meaning OFD), Global business solutions margins put that to shame. Issuer margins are also higher than AP.
So, my take is that Frank will slice AP to the bone, then jettison it at some point. Maybe not today, maybe not tomorrow, but someday.
Frank doesn’t know jack sh-t about bill pay. He let it atrophy and now it’s a drag on earnings. I fear he’s not that smart
Frank is stripping back the bones of the company, and I would guess he is going to sell off parts that he doesn't know how to run, doesn't want to run or are failing due to the new leadership or lack-there-of.
Many companies have recently terminated mature experienced employees as simply a cost-cutting measure. They are expensive.
On the other hand, I get your drift - without seasoned experience, who will provide the needed guidance and mentoring in these competitive times?
Competitiveness is NOT in the plan.
So selling off chunks might be the mid to long-term plan.
Although for the most part, Fiserv in chunks would be just chum for the big competitors.
Might be floating for quite a while without any bites.
It's certainly plausible. To put it lightly, Frank dislikes Account Processing and will likely sell off that unit first. TH was forcibly relocated to Coral Springs, likely to get him ready to transition onto a different part of the company while AP implodes and goes up in flames.