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| Is Xerox Undergoing a Massive Transition? | Views: 75 |
| Sep 28, 2009 10:08 pm | | Is Xerox Undergoing a Massive Transition? | # |
Lamar Morgan 707-709-8605 | | I saw the CEO of Xerox on Bloomberg TV this morning telling the world that it was getting into the technology support business. Xerox is getting ready to do some serious battling with some giant companies. Of course, it will be a giant itself. When Xerox becomes the owner of ACS, which has more employees that Xerox itself does, Xerox becomes a $22 billion company.
Xerox will now join battle with HP in print managed services, something that HP expanded into with its $13 billion acquisition of EDS last year. It will also take on IBM global services as well as Dell, which last week bought Perot Systems for $3.9 billion.
I would not think that now would be a good time to purchase a major company - not with the nation in such a big recession. What do you think? Is a recessionary period actually a good time to be purchasing a major company? Could actually be a contrarian approach - do exactly the opposite of what Wall Street recommends?
Lamar Morgan
CDMM - Synergistic Business Marketing
707-709-8605
Need PR?...Call Lamar!
Private Reply to Lamar Morgan 707-709-8605 |
| Sep 28, 2009 10:21 pm | | re: Is Xerox Undergoing a Massive Transition? | # |
Russ Jackman | | When the economy is down, you can find more deals. Less profitable companies are worth less than more profitable companies, so when the profits are down at a company you want to buy, that is the best time to buy it. You'll see a lot more M&A activity as the cash-rich companies prey on competitors that may have good business models or valuable brands, but as just not as profitable at the moment or running into temporary cashflow / credit issues.
Private Reply to Russ Jackman |
| Sep 28, 2009 10:24 pm | | re: Is Xerox Undergoing a Massive Transition? | # |
Scott Wolpow | | They are looking long term not short term. Wall Street only know next and last quarter, nothing else. There is no real money in most hardware anymore. The day of the small services company is over. That is why I left the field 3 years ago. Most of it will be managed services and remote access.
Major companies want one point of contact, makes it easier to screw up things.
Private Reply to Scott Wolpow |
| Sep 29, 2009 9:33 pm | | re: re: Is Xerox Undergoing a Massive Transition? | # |
Ron Sam | | Xerox's story here: http://3.ly/hbg
"By combining Xerox's strengths in document technology with ACS's expertise in managing and automating work processes, we're creating a new class of solution provider," said Ursula M. Burns, Xerox chief executive officer. "A game-changer for Xerox, acquiring ACS helps us expand our business and benefit from stronger revenue and earnings growth.
So as a former Xeroid and XRX stock owner I ask myself why the stock isn't moving. I know they lost a class action lawsuit costing them $60M. Not that big in the realm of things.
I wondered if the female CEO thing had something to do with the stagnation. At one time the stock was over $120 a share. Then a stock split brought it down to $60 and now it ~ $8.00 if that and yes the stock did tumble (15%) after the news of ACS. WSJ felt that investors may be over reacting.
The articles on the web seem to point towards reputation, customer service horror stories, industry want girls to stick with knitting. It is unfair that the economy is stagnating as well.
If you look at Xerox technological breakthroughs with the new lower cost of ink and no cartridges, that should make a big difference in the printing industry. Maybe it will take more time to educate the market.
For their innovations look here:
http://www.xeroxparts.net/blog/pt/blog/
My feelings are that the contracts for high payouts for executives on golden parachutes were too fat and too far reaching. Paul Allaire the past CEO of Xerox and former IBM chief takes an enormous sum and has a clause to keep on paying to his descendants after he dies (in perpetuity). He is not the only one with this provision, so I'm told.
When Anne Mulcahy left, I believe it was a buyoff of $20 million but I don't know the rest of it, if she has a contract like Allaire's.
Ron
Private Reply to Ron Sam |
| Oct 04, 2009 12:17 am | | re: re: Is Xerox Undergoing a Massive Transition? | # |
Lamar Morgan 707-709-8605 | | Russ,
The US economy has been down ever since before Bush left office. Have you seen a lot of M&A activity? Maybe I simply have not been paying much attention, but I don't recall seeing a lot for M&A. What I have seen is Wall Street companies disappearing - like Bear Stearns and Lehman Brothers. I have seen banks and auto companies begging for bailout money to stay in business. But, I have not seen much in the way of big-time M&A like what Xerox recently announced. And here, after it was announced the stock went down. I heard a rumor some time ago that Apple Computer wanted to purchase Twitter, but I don't know if that was anything more than idle gossip. Do you see a technology company that needs a buyer?
Lamar Morgan
CDMM - Synergistic Business Marketing
707-709-8605
Need PR?...Call Lamar!
Private Reply to Lamar Morgan 707-709-8605 |
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