Computer Associates to Stop Buying Companies - Start Spinning Them Off
from the seems-like-the-reverse-of-a-good-plan dept
Now this seems like a very strange plan. Computer Associates announced today that they're going to stop buying new companies and instead start spinning off a company a quarter. Now, I'm no financial genius, but it seems to me that this is the exact opposite of what they should do (and what most other companies are doing). There have been a lot of spinoffs in the last five years because the market was doing well. Now, with the downturn, there's been a lot of buying, because companies were cheap. So, basically, what CA is saying is that they bought a lot when the price was high, and now that the price is low, they're only selling. Doesn't seem like the smartest strategy to me.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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