I'm sooo glad she's not helping me negotiate my next car or home purchase.
Playing it conservative on debt levels, IBM will pause its share repurchases in 2020 and 2021, a move that Rometty describes as "being prudent."
So this explains a portion of how they're going to pay for it.
https://www.cnbc.com/2018/10/29/ibm-ceo-ginni-rometty-63percent-premium-for-red-hat-is-a-fair-price.html
It’s a cash deal. Meaning funded by 1) no share buybacks, 2) cutting all overhead (bye bye B&P, strategic initiatives), and 3) jettisoning businesses.
For what it’s worth, sources in the Indian firms view this move as IBM going all-in as a CSP.
Yeah, that is laughable... the only things that was helping the earnings per share number were the layoffs (cost cutting) and the stock re-purchases... I guess now IBM will have to layoff even more unless Red Hat REV is growing at such a pace that it will offset IBM declining REV.