Any thoughts on who will buy Citrix?
8 replies (most recent on top)
No one will buy this toxic sh-tshow
No one. The plan is to cut costs aggressively then go private via an Elliott induced LBO. Taking Citrix out of the public investor cycle stock meltdown. Look for an LBO early '22 of ~$75-80.
Amazon Workspace and Microsoft WVD and Microsoft's aggressive moves have squeezed what little value was left with the company. Now Vmware is free of Dell to make aggressive investments.
No one is buying Citrix. Market cap is currently 11.2 Billion dollars. No one is going to spend $11B on this company in its current shape. It has to be fixed first.
Correction
Step 1: Layoff
Step 2: Go Private
Step 3: Ki-l all products that do not show growth
Step 4: Big Layoff
Step 5: Focus on revenue generating products to milk’em as much as possible.
Step 6: Layoff
Step 7: rebrand and rename
Step 8: One last Layoff
Step 9: show profitability and growth
Step 10: Really, Truly, Sincerely the last Layoff
Step 11: Find a buyer or relist as lean, mean, growth oriented company
Step 12: Finally put a smile on Elliot, board and major shareholders
I agree no one wants to buy Citrix. All those rumors for several years that Microsoft was going to buy them but Microsoft knew they shouldn’t touch Citrix with a 10 inch pole.
Private equity it is. The financials are a mess and new products (Workspace, DaaS) are not selling. Old products generating revenue has been neglected for years by management and so that the revenue there is also declining. There account books are mess, strategy needs 180 degree changes, not possible to correct it with public scrutiny.
These are likely steps:
Step 1: Layoff
Step 2: Go Private
Step 3: Ki-l all new and old products that does not
Step 4: Big Layoff
Step 5: Focus on revenue generating products to milk’em as much as possible.
Step 6: rebrand and rename
Step 7: show profitability and growth
Step 8: Find a buyer or relist as lean, mean, growth oriented company
Step 9: Finally put a smile on Elliot, board and major shareholders
Aspirational timeframe for Step 1 to Step 9: 3 years
At this point I’d think possibly a private equity group, then they take Citrix private like another poster mentioned. This gives everyone time to regroup and rebuild without the scrutiny of the public spotlight.
You had better buy it. No one else wants it. Years of bad management. Declining revenue. Losing stock value. Obsolete products.