Thread regarding IBM layoffs

Kyndryl will fold soon I feel. It is sitting out there as a ghost ship now waiting to fail or be acquired for it's customer base

And this would certainly be the nail in Kyndryl's coffin:

Kyndryl Shares Swoon on Fear It Faces Huge Liability in Lawsuit Against IBM --
@bozj+1h0sl9dM

may hit a new all-time low today

And so it did.

Kyndryl at some point in the future will get acquired by someone

Kindryl stock has dropped more than 75% (i.e. worth less than 1/4) since spin-out and may hit a new all-time low today. It closed yesterday at only 2% above this milestone. Or perhaps millstone is a better word.

Acquisition probably just waiting for IBM to cut the umbilical.

There is no doubt that it is in Kyndryl interest not to be tied at the hip with IBM. The question is are they going to be successful? I am fairly confident that Kyndryl at some point in the future will get acquired by someone.

You mean goodbye IBM. Kyndryl is going to stop selling and using IBM services which means less revenue for IBM.

IBM has paid Kyndryl almost 1B in the last 6 months.

I don't recall the end date, but Kyndryl has a contract with IBM for identity services.
The also locked kyndryl accounts into paying for 2 years of IBM software.

"There is no hip attachment Kyndryl encourages and is helping move most of their customers off IBM"

The kyn employee's need to be moved off all the IBM as well.
If you're still using an ocean ID then the hip is still attached.
It's really pathetic at this point. The separation was how long ago now?

There is no hip attachment Kyndryl encourages and is helping move most of their customers off IBM

You have to ask the IBM board what the heck were you thinking keeping GTS for the past 5 years. You spin them off and they drop 50% in 6 months. Who set their 6 month ago valuation SEC are you paying attention? A compare to any other body shop says they should be out of business (18 billion in revenue and worth 2.5 billion market cap) I expect Goldman will take them private and pay for it by nuking the current management team OR one of the Indian body shops just buying them. Kyndryl is selling for way under market for their current revenue and someone will scoop them up. The real question is will the new company still be attached at the hip when it comes to IBM.

Kendryl was a tu-d from day one. IBM should have spun them off or sold them years ago. Not forecasted to make a profit for years. Nuff said.

Only half. Waiting for the price to fall further before selling the other half. Buy high and sell low.

So IBM lost a billion on this?

[Article quoted below]

By: Eric J. Savitz
June 2, 2022 1:54 pm ET

IBM IBM +0.52% has swapped half of its nearly 20% stake in the managed IT services firm Kyndryl KD +5.21% to Goldman Sachs GS +0.75% , securities filings show.

As part of the IBM (ticker: IBM) spinoff of Kyndryl (KD) completed last November, Big Blue held on to a 19.9% stake, but promised to sell it within 12 months of the completion of the spin.

Kyndryl shares have struggled mightily in the public market—the stock has fallen by more than 50% since closing the first day of trading at $26.38.

There are several reasons for the weak performance, which go beyond the broad selloff in tech shares. Kyndryl is working to turn around its business, but expects shrinking revenue until fiscal year 2025.

Also, while investors like IBM shares in part for its 4.7% dividend yield, Kyndryl isn’t paying any dividend, which made it either impossible or unattractive for some IBM holders to keep their Kyndryl stake.

Kyndryl also has faced the overhang from the pending sale of IBM’s stake. But the unwinding of that position is now making some progress.

In a recent filing with the SEC, IBM disclosed that it has swapped half of its stake, about 22.3 million shares, along with $46 million in cash, to Goldman Sachs, in exchange for the extinguishment of a $357 million short-term credit facility. Goldman, in turn, filed with the SEC to disclose the position, and has since sold a small portion of the shares.

“Consistent with our stated intentions at the time of the separation of Kyndryl, IBM has begun to sell its retained stake in Kyndryl,” IBM confirmed in a statement. “This initial transaction addresses half of our holdings. It remains IBM’s intention to sell its remaining stake within 12 months of the November 3, 2021 Kyndryl separation date.”

It could take some time for the market to completely absorb the shares held by IBM, and now Goldman. Together, they total close to 45 million shares, or more than 20 days of average trading volume in Kyndryl shares.

On Thursday, Kyndryl is up 3.4%, to $12.69.

So exactly as planned.