IBM To Split Into Two Companies In Order To Focus On Cloud Computing, AI Businesses

International Business Times 

International Business Machines (IBM), one of the most iconic names among American corporations, said it will split the company into two by the end of next year in order to focus on the growing and higher-margin cloud computing and artificial intelligence markets. IBM said it will spin off its legacy infrastructure services unit as a yet unnamed public company (NewCo), while the other company, the "new" IBM, will largely be engaged in the cloud and artificial intelligence businesses. IBM Chief Financial Officer James Kavanaugh told Reuters that the new company (NewCo) will have about 90,000 employees and its executive structure will be decided over the next few months. IBM said it expects to record almost $5 billion in expenses related to the separation. After the separation is completed, each company's dividend policy will be determined by its respective board of directors.