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As the very good comment above points out, IBM will need to cut costs very significantly regardless, as they've paid so much the interest on the debt is more th
by Mindwipe 7y ago
As the very good comment above points out, IBM will need to cut costs very significantly regardless, as they've paid so much the interest on the debt is more than Red Hat makes.
- dmix 7y agoThey could easily make it up by cross selling to Red Hats consulting customers and likewise for Red Hat to IBM customers. They shouldnt have to gut Red Hat to extract additional value from an M&A. Plus other intangibles like access to talent and access to new markets in the future for both sides. Cost cutting isn’t the only business strategy. Although one that modern (public shareholder driven) businesses became obsessed with since the 1980s.
- sumoboy 7y agoI give IBM two quarters before they start layoffs regardless how RH performs.