GAFAM and IBM Dying in Massive Debt, Hence the Mass Layoffs (Increasingly Silent Layoffs That the Media Fails to Mention)
As per figures released a few hours ago, Facebook's debt grew almost tenfold in 4 years and that's not counting massive secret debt (off the balance sheets, like Enron's)
IBM debt-loading was last discussed this earlier this year and it certainly looks like the point regarding IBM's "debt-loading business machines" got borrowed/adopted in circles of IBM sceptics, mostly insiders or former insiders.
Some hours ago somebody quoted a comment that says: "The reality is IBM is no longer a real tech company at all. It is a Private Equity company that leverages its mass scale to conduct mergers and acquisitions to avoid accountability for another day. Lures investors in with big dividends, their share of the spoils."
The response to it alludes to Red Hat and Kyndryl - the repository of "toxic assets" and about twice as much debt as Kyndryl is "worth" (according to Wall Street, which wrongly evaluates the "value" of companies anyway). To quote: "The leverage is the real problem here. If we go back 15 years, IBM had a total debt around 30 billion. After 1Q26 they have a total debt around 70 billion. The long term debt shows shows similar or worse growth. There are a couple of caveats: they bought Red Hat (with debt) and dumped Kyndryl (leaving them to assume some debt.) But what we see is something that looks like a private equity firm (as you mention) or like a utility. Massive and growing debt....very generous dividend....not a lot of free cash room."
"IBM has probably been pulling that trick for a while," an associate has noted, "as it continues on its way down spewing smoke and flames" (now under investigations - yes, plural - for securities fraud).
"Just think," this associate has added, "there were a few years around a quarter of a century ago when IBM knew how to not only work with GPL + Linux but make billions through collaboration in that area" [1, 2] (IBM helped a lot in the SCO lawsuit, but only because IBM itself had been sued; this was selfish, self-serving, not altruism).
"Then they got filled with Microsofters," the associate argues, "and have been losing money ever since as their ideology forces them to walk away from profit" (to buzzwords and vapourware, i.e. baseless promises of a future that cannot feasibly exist).
If you think that's bad, consider that GAFAM has similar issue. It has many secret layoffs and Google's debt has more than trebled in just 9 months. This was in the news of yesterday: South Korean Authorities Scrambling to Save Stock Market From Hey Hi (AI) Bubble
"The country has turned into a casino," says the summary. How were GAFAM allowed to hide trillions in debt? Like we said earlier this week, the integrity of this economy is only as good as its leaders or those who govern the market. █