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> Just from these numbers we can conclude that IBM is seeing some pretty significant synergies in the purchase that the market isn't. Or there was basically ve
by Voloskaya 7y ago
> Just from these numbers we can conclude that IBM is seeing some pretty significant synergies in the purchase that the market isn't.
Or there was basically very little chance that the acquisition wouldn't go through, and since we have known about it for months, it is already priced in the current stock value of IBM, so today's trading would be mostly unrelated and not representative of what investors think about the purchase.
- vpribish 7y agoexactly. the impact from the deal mostly happened at its announcement October 29, 2018 when IBM fell about 5% on the news.
- bonzini 7y agoWhich in turn can be explained by a decrease in buybacks and/or dividends and thus by lower expected ROI.
- KUcxrAVrtI 7y agoOr more likely that IBM has been screwing the pooch every which way for the last ~~20~~ 30 years.
- bdcravens 7y agoThat doesn't bode well for Red Hat over the long term.
- bmurphy1976 7y agoUnless Red Hat cannibalizes IBM from the inside out, and there's some talk that this is exactly what they want. They may be grooming Red Hat's CEO to replace IBM's CEO.
- KUcxrAVrtI 7y agoThat would be a pleasant surprise.
- bonzini 7y agoAnd the market would find out about that suddenly the day they announce buying Red Hat?
- Bartweiss 7y agoThe price/interest/profit numbers are interesting, but this is definitely a good point too. Short-term shifts in the price of IBM aren't going to have much to do with this.