IBM to Spin Off Infrastructure Services Unit

IBM is undergoing a strategic transformation by splitting into two companies: one focused on hybrid cloud and AI, and the other on managed infrastructure services. This move aims to unlock growth by addressing a trillion-dollar market opportunity. The new company, temporarily named Newco, will have a strong market position and investment-grade balance sheet. Both companies will maintain a strategic relationship, allowing them to partner freely with others. Leadership and governance structures are being established, with a focus on managing risks and ensuring sustainable growth. The split is expected to be completed by late 2021, with continued focus on acquisitions and organic growth.

What are the anticipated challenges in managing the relationship between the two new companies?

What timeline is expected for the completion of the spinoff process?

What are the future plans for acquisitions and investments post-spinoff?