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What business is IBM spinning off?

What is IBM spinning off?Starting on November 4, 2021, Kyndryl will begin “regular way” trading on the New York Stock Exchange under the symbol “KD.” Each holder of IBM common stock will receive one share of Kyndryl common stock for every five shares of IBM common stock held on October 25, 2021, the record date for the distribution.

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Why is IBM spinning off Kyndryl? The reason is a migration of IT data centers to the cloud. Kyndryl, with its spinoff has an opportunity to go after many customers and businesses it couldn't pursue before. This includes its own cloud and consulting services formerly handled elsewhere at IBM. Kyndryl does not currently pay a dividend.

What business is IBM spinning off?

ARMONK, N.Y., November 3, 2021 – IBM (NYSE: IBM) announced today that it has completed the separation of its managed infrastructure services business to Kyndryl. Starting on November 4, 2021, Kyndryl will begin “regular way” trading on the New York Stock Exchange under the symbol “KD.”

What company did IBM spinoff?

Late Wednesday, IBM completed its long-planned spinoff of Kyndryl, the company's sprawling managed IT services company.

What happens to IBM stock with Kyndryl?

(“Kyndryl”) was recently spun off from International Business Machines Corporation (“IBM”), with IBM distributing 80.1% of its Kyndryl shares to IBM shareholders on November 3, 2021 (the “Distribution”).

Does Kyndryl have a future?

Kyndryl will continue to lead our industry by leveraging our scale and alliances in a broad and expanding market for digital transformation.” But while the market is undoubtedly broad and expanding, it is also highly competitive.

What will happen to IBM GBS?

IBM Global Business Services Renamed IBM Consulting. Bangalore, India, October 14, 2021: IBM (NYSE: IBM) today announced that IBM Consulting is the new brand name of its global professional services business previously known as IBM Global Business Services.

What happens to stock options when a company spin-off?

If you own options on a stock that executes a spinoff, the number of shares of the original stock in the contract will remain the same. In addition to the original shares, the new shares paid out by the issuing company will be added to your contract.

How will IBM split affect stock holders?

As previously announced, IBM (ticker: IBM) will distribute 80.1% of its Kyndryl shares to current IBM holders. Each IBM holder will receive one Kyndryl shares for each five IBM shares held as of the record date of Oct. 25. The distribution will be tax-free to IBM holders.

Why IBM is spinning off?

IBM is focusing on hot technologies such as artificial intelligence and the cloud, and is cutting adrift legacy IT activities to operate as an independent company. Kyndryl is the new name for IBM's managed infrastructure services business, which will spin off as a separate company by the end of 2021.

Related Questions

Is IBM spinning off GBS?

IBM Spins Off GTS and Rebrands GBS as "IBM Consulting"

Why did IBM spinoff Kyndryl?

The reason is a migration of IT data centers to the cloud. Kyndryl, with its spinoff has an opportunity to go after many customers and businesses it couldn't pursue before. This includes its own cloud and consulting services formerly handled elsewhere at IBM. Kyndryl does not currently pay a dividend.

What happens to IBM stock when company splits?

Does a stock split change my equity in IBM? No. The stock split does not change your proportionate interest in the company.

What happens to stock after spinoff?

When a spinoff's shares start trading on a stock exchange, the value of the parent company's stock may drop by the value of the new company's stock. This is due to the fact that the parent company stock no longer reflects the value of the unit that was spun off.

Is Kyndryl a good investment?

Dividend initiation – Once the smoke clears and it's apparent Kyndryl is solidly profitable, a dividend is likely. This will attract a new group of investors. It may take a year or two as management wants to pay down some debt first and reinvest in the business.

What is happening with Kyndryl?

Kyndryl has laid out a turnaround plan, but it's taking time. The company has targeted 2025 for a return to revenue growth. Meanwhile, Kyndryl expects to continue to shrink. And the company's December quarter financial results—released late Monday—did nothing to improve investor sentiment about the company's outlook.

Does IBM sell GBS?

As IBM looks to push forward with a global transformation of its operations, the company has announced the repackaging of IBM GBS as IBM Consulting.

Is IBM selling off GTS?

The 109-year-old company expects the spin-off of the GTS managed infrastructure services unit—which it is referring to as “NewCo” for now until it adopts a formal name—will be completed as a “tax-free” deal by the end of 2021.

Is a spin-off good for shareholders?

Due to stock price volatility, spinoffs can underperform in weak markets and outperform in strong markets. Historically, spinoffs have been good investments for investors.

What happens when a company is spun off?

In a "spin-off," a parent company distributes shares of a subsidiary to the parent company's shareholders so that the subsidiary becomes a separate, independent company. The shares are usually distributed on a pro rata basis.

What will happen to IBM stock after Kyndryl split?

Starting on November 4, 2021, Kyndryl will begin “regular way” trading on the New York Stock Exchange under the symbol “KD.” Each holder of IBM common stock will receive one share of Kyndryl common stock for every five shares of IBM common stock held on October 25, 2021, the record date for the distribution.

Did IBM have a spin-off?

IBM announced its move to spin off its managed infrastructure business in October 2020. In April this year, the technology company disclosed that Kyndryl will be the name of the new independent company that will be formed from the separation, which was approved by IBM's board of directors in October.

What happens to IBM stock after spin-off?

Starting on November 4, 2021, Kyndryl will begin “regular way” trading on the New York Stock Exchange under the symbol “KD.” Each holder of IBM common stock will receive one share of Kyndryl common stock for every five shares of IBM common stock held on October 25, 2021, the record date for the distribution.

When did IBM spin-off Kyndryl?

Kyndryl Holdings, Inc. (“Kyndryl”) was recently spun off from International Business Machines Corporation (“IBM”), with IBM distributing 80.1% of its Kyndryl shares to IBM shareholders on November 3, 2021 (the “Distribution”).

Is IBM or Kyndryl better?

IBM might generate more stable growth without Kyndryl, but Kyndryl is also deeply undervalued as a standalone investment.

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