Beginning of summer vacation. The moment where I don’t feel guilty about not thinking about Clients or business at all.
So when the news stream proposes an article referring to the fact that IBM may purchase 70,000 Macs for its own people’ use, citing this leaked video:
my mind goes:
“Why stop here?”
“Would it be possible for Apple to buy IBM?”
But then again, why stop here?
The interesting bits of IBM are its hardware and software businesses; so the game would be to divest its Services business, which brings in around $19bn in revenue but almost no profit, get rid of its almost 200,000 employees and merge the smaller but much more profitable entity with Apple.
Who would object?
Not the Antitrust: this would not increase the company dominance in any segment: in fact, both companies have been very good at extracting a disproportionate amount of PROFITS from their non-monopolistic marketshares in Enterprise and Consumer.
Not IBM shareholders, which have seen their investment go nowhere in the last 4/5 years thanks to un-imaginative management led by Ginny Rometty.
Not Apple shareholders: if this were an all-cash acquisition, they would see no dilution, also because the two companies P/E ratios are similar and they have been famously patient while Apple amassed its cash hoard.
Both companies give their best when their software is proprietary and both have espoused Unix variations for the long term.
Remember. You read it here, first!