Thread regarding SAS Institute layoffs

It’s not his decision. JS is the minority partner; he owns 1/3 of SAS, and 1/3 of JMP. 



At this point, both owners have to be thinking about estate planning. A software company is an awkward asset to leave your children, particularly when they’ve expressed no interest in it.

So while the decision is JG’s, I expect both owners agree that it’s time to sell. They’ve talked with Broadcom, and possibly other potential buyers. If no buyer offers a reasonable price, they’ve made plans to IPO.

If the owners have decided to sell, they must also have decided that they’ll get their best price selling JMP as a subsidiary of SAS.

Maybe John just doesn’t want to sell?

JS likes the waiting game better than quick sale. He does not behave like a man who has much of a life outside of JMP. Case in point: People who name stuff after themself usually do not have much of a life outside of that stuff. JMP has been the majority of his life.

Playing with JMP until a sale/IPO then folding is his best play. He is too old to go with JMP post sale/IPO and likely would have a ego insulting diminished if he stayed on post sale/IPO.

Finally. his kids have no interest in JMP. Add it all together and you see that there is no other play that comes close.

JS might prefer to deal with a familiar, even unpleasant, situation than to risk an unknown one that could be worse.
If that is true, JS plays his hand with his baby until a sale or IPO then folds.

“Speculations as to why JMP has not been sold?”

I was told that it was discussed at the highest level of the company whether to spin off JMP, Risk, and Fraud. I believe all three are profitable, so spinoffs might be attractive.

But the decision was taken instead to make JMP a subsidiary. At the same time, the airplanes were also put into a subsidiary. This makes it easy for any buyer to keep or sell these subsidiaries, depending on whether they fit their business model.

SAS owners must feel that they'll get a better price selling the company as a whole, giving the buyer the option of selling off the parts.

"Clearly, JMP's best chance of preservation is to be sold separately from SAS."

You're right. That's a different issue. It's not clear whether they are trying to preserve it.

“Speculations as to why JMP has not been sold?”

Probably because JS is still alive and kicking.