https://finance.yahoo.com/news/red-hat-soar-ibm-deal-134926659.html
Some of the comments hit the nail on the head
Gini is a terrible CEO. She just put the nail in the coffin of a roughly 100 year old company. This is a desperate move. They had a lead in the cloud business that they first lost to Amazon and then google, microsoft and others.
Warrent Buffett voted with his feet by buying and then not too long after selling the shares.
She came from IBM global services business where she was known to be RUTHLESS. She does not understand technology, IBM's customers or IBM's strength. Previous guy SAM was an accountant guy who made numbers by cutting costs...so the downward spiral started with Sam. The best IBM talent has left...for better upstart companies because Gini and Sam were cost focused - they cut salaries, benefits etc.
its only matter of time before Mainframe business starts eroding. Perhaps mainframe business will never ever go away due to incredible intrenchment and remains a cash cow, but Gini has LOADED IBM WITH HUGE DEBTS DOING STUPID SHARE BUYBACKS, that the debt load will now over whelm the mainframe's business to provide core strength to IBM. The Red-hot move was a stupid move, huge multiples paid ....I'd give it 10% chance of ever recovering the money paid. This is a desperate move.
A former IBMer.
When I worked at IBM they were spending billions on building put cloud data centers worldwide. Since that time I've not seen IBM even mentioned in articles about cloud in the general business press. Wall Street Journal, Barrons, IBD, etc. This is a SCATHING indictment of IBM marketing.When I worked at IBM they were spending billions on building put cloud data centers worldwide. Since that time I've not seen IBM even mentioned in articles about cloud in the general business press. Wall Street Journal, Barrons, IBD, etc. This is a SCATHING indictment of IBM marketing.