So did we pay ichan out first so he got a great price so we could then effectively dismantle 2 business down to bits they could sell off.
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First of all its probably not Ichan anymore. The dude is like 150 years old. Second, isn't this backwards? "You can see that Ichan saw at the min. a difference of $137 million in assets above the IP" Bandy was paying him, CI wasn't valuing anything. That was a premium to go away.
@c2 Another thought is if the JV owns the IP and Xerox goes under and resurfaces form bankruptcy as technically and legally another company then the IP could be re licensed to the new company.
There could be a silver lining in this JV setup in a bankruptcy; the stock holders get sc--wed, outstanding debt gets taken care off, any pension plans get wiped off the books and the new emerged Xerox goes back to licensing the IP and back to business with a smaller and leaner operation.
For all your rumour and conjecture, it remains there is a singular point to be focused on - despite the tactical acquisition of Lexmark, revenues continue to decline, profits are hit, cash flow is a challenge.
The IP ‘JV’ is simply a payday loan, high interest and default traps that are set to compound the return to the JV party.
Xerox have a simple task to undertake - sell, sell, sell - not more of their business but sell MORE BUSINESS - new business, renewal business, cross-sell business, partner business, channel business, integrator business, churn tin, sell accessories.
Oh, and sell IT business too - but a saturated market with a lot of more capable players, which are far superior to Xerox.
This is a very simple task, but a very difficult one.
I wonder how we may reflect on this in 12 months time.
And as for the stock price - a reflection of what investors believe in the Xerox leadership - the past two years say they only believe in 10% of what they say and do.
The CEO and Board need a shakedown, are they believe they acting in the best interest of the shareholders, or themselves.
I believe they are acting in their own best interest.
In which case we have yet to see a new stock price low, then perhaps a new CEO.
God speed Xerox.
@be And let's not forget that if Icahn completed his actions in 2023 then it's unlikely that Lexmark would have been bought out by Xerox and another US company could have bought out Lexmark.
@ay Its "relevance" for a few reasons.. 1) the current management is now in the position that they need file Chpt 11 and/or split up the company in ways that maybe similar to the way Ichan would have proposed if he stuck around 2) Ichan got a great deal.. paid off 2x the current market cap. 3) The current management didn't recognize how much trouble they were really in that invited or encouraged a corporate raider to come in.
@b1 Even with losing 75% going from 17.5bil to 4.8bil ...
241.12 million USD is Xerox Market Cap . So he still has 19x or better that Xerox Marketcap.
And Ichan also got 542mil from Xerox which is 2x its current market cap.
@OP the very smart Icahn lost 75% of his 17.5 billion last November.
Live by the sword...
@OP why re you chunnering on about Icahn, he is long gone.
What relevance is the post and your viewpoint.
Xerox is sc--wed, it is selling everything or taking out payday loans to survive.
@aj Ichan activity was back in 2023. Xerox has been in trouble for many years.. but if you look at his purchase price of $542 million and then look at the $405 million loan we just received for IP. You can see that Ichan saw at the min. a difference of $137 million in assets above the IP.
I will say this is a simple off the cuff calculation and doesn't take into account Lexmark IP which was recently bought after Ichan and not sure what portion of that is tied to the IP loan. To be fair we would need to set the clock back to 2023 and look at the finances, stock price and etc to complete a good understanding of Ichan's logic.
With that said Ichan is not a fool and he makes money doing this year after year so if he saw that there was an opportunity to complete a corporate raid and make money I don't blame him nor do I believe he was just throwing money around.
Getting boards to buy back his shares is just one exit plan that he counts on for making his money.
"In September 2023, activist investor Carl Icahn ended his years-long, tumultuous involvement with Xerox by selling his remaining 21.8% stake back to the company for $542 million ($15.84 per share). This deal, which led to the resignation of Icahn-affiliated board members, marked a shift in control for the company."
What is it that you think anyone would buy? Businesses with rapidly declining markets and operating at a loss? Without assets?
We paid him so EC members would not get fired, including Bandy.
We paid him so we could do it ourselves on our terms and not on his terms.