IBM To Sell Weather Business - 1 minute read

Maybe a new owner can straighten that out

Alas, not when the new owner is a private equity. PEs earn money mostly by purchasing a company and increasing its spread, which basically means doing three things:

a) Increasing prices, slowly but surely, in a "boiling the frog" manner;

b) Firing everyone who knows what they're doing, and thus are expensive, and hiring in their place a skeleton crew that does the absolute minimum to keep the service alive;

c) "Vertically integrating" the new service into their "portfolio of companies", or to put it another way, trying to upsell you into their other stuff no matter how much that makes the current service worse.

If this PE is like all others, prepare for it to become much worse, and to jump ship as soon as possible.


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