I do not understand. Why does IBM keep it's ties with Kyndryl. Big Blue is continuing to hold Kyndryls common stock. This on the surface looks unsightly. I find it quite odd that Knydryl's relationship with IBM questionable. Can anyone make light of this fact or how it benefits Kyndryl.
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Kyndryl is trying to get rid of IBM as fast as possible
This explains the on-going connection to IBM
Kyndryl Annual Report 2024, page 29
In connection with the Separation, we and IBM entered into various transaction agreements related to the Spin-off. These agreements also govern our relationship with IBM following the Spin-off. We rely on IBM to satisfy its performance obligations under these agreements.
Since the Spin-off, certain contractual disputes have arisen between us and IBM. We and IBM have commenced arbitration proceedings related to certain of these matters. If the outcome of those arbitrations is unfavorable to Kyndryl, if a mutually acceptable commercial resolution cannot be found, if the terms of any resolution of these matters are unfavorable to us, or if IBM is unable or unwilling to satisfy its respective obligations under these agreements, including indemnification obligations, our business, results of operations and financial condition could be adversely affected.
https://investors.kyndryl.com/static-files/0205a5a1-2f59-4ab7-b892-58615604423a
Feb. 20, 2024
Kyndryl Holdings, Inc. (NYSE: KD), the world's largest IT infrastructure services provider, today announced the completion of an offering of $500 million of 6.350% Senior Notes due 2034.
The Company intends to use the proceeds from this offering to immediately repay the Company's outstanding $500 million term loan, which was scheduled to mature in November 2024. The interest rate on the new ten-year debt is lower than the current interest rate on the term loan.
"This refinancing allows us to rebalance our debt maturities while maintaining leverage consistent with our investment-grade credit ratings," said Kyndryl Chief Financial Officer David Wyshner.
https://investors.kyndryl.com/news-releases/news-release-details/kyndryl-completes-500-million-offering-senior-notes-its-first
Kyndryl is so way overvalued, for what it really has to offer. Massive debt and a legacy workforce is not exactly a good selling point.
Yes Kyndryl did use debt to pay debt. It just was not to IBM, at least not openly. I do not trust Kyndryl or IBM. Both companies are secretive and still to this day way way to inter-connected.
I think they should just fire all of you and start over. Kyndryl was handed a sh-t sandwich by IBM. In order to be prosperous and stable. Kyndryl needs to employ the right people for the right job and the right price. I am amazed at all the gossip that goes on here. Anybody that comes to this type of format are just really misinformed and a case of the blind leading the blind. It is a sounding board for the clueless among us feeding into a game of Marco Polo.
Ibm sold it's Kyndryl shares to it's self. There by removing ownership of Kyndryl stock. It will not be public record. Those shares no longer exist. They are now part of IBM's revenue stream. Different spread sheet. Coming to this site to complain about creating a post that makes no sense makes no sense. People come to this site, for one reason and one reason only. They are fearing for their job security. When someone posts something it is obviously a concerning question, or a persistent rumor. That could have relevance to their current job position. You coming to this site to chastise persons for their concerns. Just tells me your a company manager, or a provocateur.
Institutional investments are public info. I don't see IBM still holding any shares.
https://www.nasdaq.com/market-activity/stocks/kd/institutional-holdings
Creating this post in September 2024 makes no sense.
IBM is the reason all of us old timers are here at Kyndryl. The only reason they created KD, was to off load debt and middle age workers. So yeah, I guess shady it is. Gotta call it as you see it.
It is public record they held Kyndryl stock, I believe 19%. Yes IBM did own the stock. IBM basically traded that stock to its self to cover it's own debt. An accounting tactic. It is a way for them to avoid external debt borrowing. I don't know if that is considered shady. I'm not sure if anything is considered shady anymore on Wall Street, and corporate America. It is a complex Idea, did my best to understand it. I apologize if I did not do, a good enough job of explaining. The information is there if your willing to look.
Why do you think IBM holds shares of Kyndryl?
In a word shady