Won't IBM splitting into 2 smaller companies make it easier for both companies to be bought out?
This is just my speculation, and I'm sure this point has been brought up before on this site.
Could be an incentive to stick around after the split? "Chaos is a ladder." or "Chaos allows for getting paid for doing nothing during all the confusion."
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If they’re smart they will carve out all government contracts and sell them to local entities. They can do that quite easily in the US with Division 16. But IBM does whatever is cheapest which likely means selling GBS to a low tier Systems Integrator like DXC, CGI who are US owned but managed out of India.
Can confirm. USA ownership.
The odds of IBM or Newco being bought by a foreign company are almost nil. There are far too many govt accounts associated with IBM or Newco that require USA ownership
If IBM gets bought, it would be an Indian company that does so. It's pretty much on that path now. Arvind is already making buddy-buddy with India's Prime Minister now.
Google isn't doing nearly as well as they would like in Cloud. I can certainly see the appeal to lean down IBM and sell off all the Z + IBM cloud stuff and merge it with GCP. Google would have a niche market on banks for years to come and likely win plenty more business once they were no longer IBM.
I thought that they were already acquired. By Red Hat!
I can readily imagine NewCo merging with/being acquired by another established services firm, much like when HPE span out its Enterprise Services business and (most of) it merged with (most of) CSC.
And also much like DXC, I can see that merger being accompanied by substantial layoffs.
Why anybody would acquire the remaining IBM is a bit of a mystery, but depends on what AK has reduced the company to by that time, I suppose. I can't imagine Google, Microsoft or Amazon doing so under any circumstances: the cultural misfit would be catastrophic. I can imagine HPE buying all or perhaps some tactical parts to strengthen e.g. its storage story against Dell-EMC.
Yes, no doubt... IBM cannot survive on its own... The mainframe business is still big and lucrative and will be for decades to come... At some point, Google, Microsoft or Amazon will pull the trigger.
Being bought out can also be a recipe for losing a job. Culled to look prettier before sale, or released post sale due to round peg, square hole, or multitude of other reasons.
Why don't people just take control of their destiny and get out now? There is no golden parachute and any money they may give you will only give you a certain amount of financial freedom before needing your next job, which may take longer than expected.
There has been plenty of speculation on Wall Street, that AK is just dressing the old girl up for the big dance.