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> Just from these numbers we can conclude that IBM is seeing some pretty significant synergies in the purchase that the market isn't.

Or there was basically very little chance that the acquisition wouldn't go through, and since we have known about it for months, it is already priced in the current stock value of IBM, so today's trading would be mostly unrelated and not representative of what investors think about the purchase.

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exactly. the impact from the deal mostly happened at its announcement October 29, 2018 when IBM fell about 5% on the news.

Which in turn can be explained by a decrease in buybacks and/or dividends and thus by lower expected ROI.

Or more likely that IBM has been screwing the pooch every which way for the last ~~20~~ 30 years.

That doesn't bode well for Red Hat over the long term.

Unless Red Hat cannibalizes IBM from the inside out, and there's some talk that this is exactly what they want. They may be grooming Red Hat's CEO to replace IBM's CEO.

That would be a pleasant surprise.

And the market would find out about that suddenly the day they announce buying Red Hat?

The price/interest/profit numbers are interesting, but this is definitely a good point too. Short-term shifts in the price of IBM aren't going to have much to do with this.

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