IBM Message Board - Msg: 20843283

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IBM

IBM 306.44

-1.9%

Nov 7 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JakeStraw who wrote (8023)	12/9/2004 3:56:25 PM
From: Bookdon	Read Replies (1) of 8218

The Bad the Ugly and the Good This is much more complex than the ugly picture you have shown us. IBM gets rid of a (mostly) money-losing division, and they get to participate (since they own a share of the stock in the new company) in any up-side gained by the new company (but don't take a hit if it remains unprofitable). China now has to buy more AMAT equipment (a division of which is in Oregon, and will be able to maintain employment there). China has to hire more employees (some 10,000 will be IBMers in New York, according to Wall Street Journal). Maintaining communications between the new CEO of the venture (in New York) and the chinese manufacturing plants will require more air travel, causing China to buy more Boeing planes (helping the economy in Seattle). It appears that the US Northwest (Oregon and Washington) gains, New York at least keeps some of the current IBM employees (while IBM sheds them), and IBM stockholders (at least in the short term) gain.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next