A curious naivete has gripped Kansas City this holiday season and in the shadow of a ruthless corporate buyout.
And this sparks the question . . .
Why does TKC always have to be the bad guy and bring bad news?
It would be nice if local media did their jobs and reported a basic fact of American business.
According to the Harvard Business Review: On average, roughly 30% of employees are deemed redundant after a merger or acquisition in the same industry.
Translation . . .
Layoffs are coming to Cerner, Kansas City's largest private employer.
Meanwhile . . .
Kansas City biz hype and Mayor Q deny this fact of life and hope for a Christmas miracle when it appears that Oracle gobbled up Cerner for PROFIT NOT GROWTH.
Again . . .
We almost feel bad contradicting Christmastime hope for so many people soon to get canned.
But the reality of this situation holds consequences for voters, taxpayers and the local economy so it deserves to be noted in the mist of so much worthless HYPE.
Moreover, TKC doesn't want to get caught playing the anti-corporate activist . . . For stock holders in Oracle this is GREAT news. The company is lean, mean and looking to dominate another sector.
Also . . . There will be some very cheap office space in South KC in the VERY NEAR FUTURE.
The reality is neither dark nor ominous . . . It's merely reality and a financial consequence that needs to be confronted with something more useful than spin and silly Christmas wishes.
Read more via www.TonysKansasCity.com news links that take a hack saccherine view of the situation:
Financial execs: Cerner sale could spread the wealth -literally- to KC startups - Kansas City Business Journal
Kansas City financial professionals are hopeful that Cerner Corp.'s $28.3 billion sale to Oracle Corp. will spark more entrepreneurs and venture capital investments in the area's technology scene. Oracle (NYSE: ORCL) plans to pay $95 per share for Cerner (Nasdaq: CERN), which is about $15 more than the stock price prior to news of the deal.
Months of speculation officially came to an end Monday as Kansas City-headquartered Cerner announced its exit to Oracle - the global cloud giant's largest-ever acquisition at $28.3 billion in equity value. The largest private employer in the Kansas City metro, Cerner's medical records solutions have developed over the course of four decades into a transformational healthcare powerhouse, the company's CEO said Monday .
A concern with any acquisition is the potential for layoffs - especially ones that cut deep. But Cerner Corp. (Nasdaq: CERN) may have an advantage in the proposed $28.3 billion, all-cash deal to sell to Oracle Corp. (NYSE: ORCL), with closing expected in 2022.
Developing . . .