It’s not accurate that all of Xerox’s R & D is in Xerox International Partners. XIP just sells low-end FX products into the US (usually white label of the company it sells to) in product categories that Xerox doesn’t play in. Xerox is just selling its current 51% ownership in XIP to Fuji as part of the deal.
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So we exit the JV with Fuji, too bad we cant exit JV from Xerox
Wonder if there will be a special one-time shareholder dividend with the proceeds. That's how Icahn usually does it with asset stripping. Get some cash, reward the shareholders who had nothing to do with it.
No surprise that things worked out this way as the lawsuit had to be settled before it went to court so that both organizations could move forward as the relationship between Komori and 'new' Xerox leadership, i.e. Carl Icahn & co., was poisonous. This gives Fiji Film complete control over its products and will make it easier for Xerox to be sold. The latter is likely the reason that Xerox’s stock has jump 5% today up to $36.62.
I was a little surprised that the deal gives Fuji Xerox gets a "includes 51% ownership in Xerox International Partners." Then again, that's where most of Xerox's R&D and product development lies today and Johnny Boy clearly believes that a 'tech powerhouse' does not need to spend any money on either. Icahn's goal is to sell the value of the Xerox brand, which is interesting as any freshly-minted MBA student will tell you that a brand is only as good as the products, service, and people behind it. Just ask Kodak, Pan Am, Woolworth’s, Blockbuster, BlackBerry, etc.
Icahn better sell Xerox soon or he’s going to lose his shirt when the stock tanks to below $10 a share when the cost reductions finally hit their apex in 2020, revenue nosedives due to lack of everything, and Xerox's junk bonds come due.
From the Bloomberg article: “Fuji Xerox, operating as a subsidiary of Fujifilm, will continue to supply to Xerox after the transaction is completed, the companies said.”
Further cooking of the goose
So, what does this mean in layman’s terms? What does it mean for xbs?
So who exactly will make Xerox products? I guess Xerox either signs FX as a supplier or gives the rest of their business to HP? But who will sell our products in Asia? U.S. companies long failed there. Leverage thr HP/Canon deal?
Sale of current Xerox assets to begin in 3.....2.....1.....
Probably makes us a lot easier to get sold now...
Going, going, gone...
https://www.bloomberg.com/amp/news/articles/2019-11-05/xerox-agrees-to-sell-25-of-fuji-xerox-for-2-2-billion-dj-says