IBM plans to spin off a $19 billion technology consulting business so it can focus more intently on cloud computing and artificial intelligence, the company said Thursday.IBM stock jumped on the news. The Global Technology Services (GTS) division, minus a few elements, will be carved out into a separate public company. The new spin-off doesn't have a formal name yet and is referred to as "NewCo" in IBM's marketing and investor relations ... IBM stock is up approximately 7 percent for the day as of press time. IBM’s has announced a plan to spin off the Infrastructure Services business unit in its Global Technology Services (GTS) group as a new, free-standing organization. ET Finally. On October 9th, IBM announced that it will split itself up by breaking up the company into two pieces, spinning off its legacy IT services businesses to focus on cloud.IBM … See more: IBM’s stock surges after plan to spin off managed infrastructure services unit. Yahoo Finance’s Alexis Christoforous and Brian Sozzi speak with IBM CEO Arvind Krishna about the company’s plans to spin off its legacy business to focus on cloud computing. Moreover, dividend investors will … IBM isn't going anywhere, but the company is changing its pace. The stock had been down 7% this year through Wednesday's close, lagging cloud rivals that have seen big gains during the pandemic with companies shifting more work online. International Business Machines Corp. is spinning off a slower-growth business that manages corporate computer systems so it can focus on the boom in … Its goal in doing so is to shift the focus at IBM on cloud services. IBM to Spin off $19B Business to Focus on Cloud Computing More FILE - In this March 18, 2019, file photo, the logo for IBM appears above a trading post on the floor of the New York Stock … Plus, the dividend yield is high at 5.28%, the P/E ratio is relatively low at 14 and IBM has announced an interesting spin-off that might make the market reconsider the way it is looking at the stock. These are the details. Rich Howe 2020-11-25T14:56:33-05:00. IBM announced Thursday that it is spinning off its $19 billion managed infrastructure services business in a deal that will be tax-free to shareholders. The … IBM Infrastructure Spin-off Notes. The company wants to spin off its Global Technology Services division into its own publicly-traded company. IBM's current $145 billion enterprise value is equal to just 12 times its 2019 free cash flow (FCF) of $11.9 billion -- FCF, it should be noted, that's far below a 2012 peak of $18.2 billion. IBM said the separation, a tax-free spin-off to IBM shareholders, will likely be completed by the end of next year. The spinoff “essentially takes more than 50 per cent of the business and cuts it off into a separate company,” said James Cortada, who spent decades at IBM and has written books on the company. (RTTNews) - Shares of International Business Machines Corporation (IBM) are rising more than 7% Thursday morning on the news of its plan to spin-off managed infrastructure services unit. IBM shares soared after the company announced plans to spin off its IT infrastructure unit to focus on its cloud computing business.. Spinoff Investing Follow. The stock spiked higher by as much as 10% when IBM announced the spinoff, though it pulled back afterward. IBM plans to spin off a major part of its information-technology services operations, as the 109-year-old tech pioneer sharpens its focus on the faster-growing cloud-computing business and AI. IBM to spin off $19B business to focus on cloud computing In this March 18, 2019, file photo, the logo for IBM appears above a trading post on the floor of the New York Stock Exchange. Most companies that are large and established enough to spin off a division have low volatility, and their stock prices remain stable even when the market oscillates wildly. Investors welcomed the news, sending IBM's shares up more than 7% in Thursday trading. (Sharecast News) - International Business Machines (IBM) said it planned to spin off its IT infrastructure services unit to focus on rapidly-growing cloud computing business. The deal is anticipated to “be achieved as a tax-free spin-off to IBM shareholders,” with closure set at the end of 2021. Learn More HOME; BLOG; ABOUT; LEGAL; RESOURCES; SIGNUP TODAY! Analysis IBM will push through a major restructure at the IT outsourcing business it's spinning off, with 20,000 or more staffers facing the chop, an analyst estimated.. The original IBM will focus on the “US$1 trillion hybrid-cloud opportunity,” Krishna said. The upcoming spin-off of Managed Infrastructure services appears to represent a major shift in the growth mindset. November 25, 2020. IBM says it is breaking off a $19 billion chunk of its business to focus on cloud computing. 2 behind Accenture. IBM's stock surges after plan to spin off managed infrastructure services unit Published: Oct. 8, 2020 at 6:41 a.m. IBM has received a $140 price target after announced a spin-off of its Infrastructure Services. Spin-Off to Boost Prospects in Hybrid Cloud IBM had recently announced the spin-off of its legacy Managed Infrastructure Services business in a bid to accelerate its hybrid cloud growth strategy. Paychex overtook a buy point, and IBM blasted to the head of the Dow Jones today, on plans to spin off a key business unit. IBM's Global Technology Service division is the new spin-off. On Thursday, Oct. 8, IBM announced that it will spin off the managed infrastructure services division into a new public company. IBM reported $77.15 billion in total revenue for 2019 and 352,600 total employees. Those who buy IBM stock at a very cheap price now will get access to the shares of a rapidly growing, high-multiple company later. 1 ranking on the 2020 CRN Solution Provider 500 list of North America’s largest solution providers to No. Once the spin-off is completed, IBM will move from a No. Morgan Stanley analyst Katy Huberty has increased her price target on IBM (NYSE: IBM) to $140 from $128 and assigned the company an “Equal Weight” rating following the company’s decision to reduce its dependence on legacy operations. "IBM is laser-focused on the $1 trillion hybrid cloud opportunity. But the spin off … Stock spiked higher by as much as 10 % when IBM announced that it will spin its... Ibm 's shares up more than 7 % in Thursday trading LEGAL ; RESOURCES ; SIGNUP!... 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