Tag Archives: merger

Astral Media has just been bought by Bell for over 3 billion dollars


News has just broken that Bell has bought outright the entire assets of Astral media. This means that the popular News Talk 1010 is now owned by Bell. Definitely showing that convergence is not dead in Canada. It will be interesting to see how this will play out in the media landscape and if Rogers or Telus will make any moves on the media front in Canada.

Read more:

http://www.newswire.ca/en/story/938567/astral-enters-into-definitive-agreement-for-acquisition-by-bell

General Motors and Chrysler have held merger talks


The Wall Street Journal, citing people it described as familiar with the discussions, said Cerberus Capital Management, the private equity firm that owns 80.1 per cent of Chrysler and 51 per cent of GMAC Financial Services, proposed trading Chrysler’s automotive operations to GM.

The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize because both GM and Cerberus want to quickly divest the assets under discussion.

read more | digg story

Microsoft: It’s time to consummate the marriage with Citrix


Is it time for a shotgun wedding between Microsoft and Citrix? The relationship between Microsoft and Citrix is much like that of a man who has been serially dating the same woman for 15 years, but never seems to be able to consummate the deal. He’s afraid of commitment, or perhaps like that old expression goes, why would he buy the cow when he can have the milk for free?

read more | digg story

At What Point Is It Cheaper to Just Buy Novell?


Microsoft no longer sees itself as simply a Windows company. One recent indication of this is their determination to buy the LAMP-centric (Linux/Apache/MySQL/PHP) Yahoo! Instead of migrating all the tried and tested Yahoo! services over to a Windows server infrastructure, wouldn’t it be simpler to establish Microsoft Linux through the acquisition of Novell? From a technology perspective Novell has two things to offer Microsoft – SUSE and Identity Management.
The U.S. Supreme Court has cleared the way for Novell to continue their Wordperfect anti-trust suit against Microsoft. Novell’s argument is that anti-competitive operating system issues caused their once mighty Wordperfect suite to come tumbling down. This turn of fortune cost Novell to the tune of $1 billion. The lawsuit Novell has filed against Microsoft is for damages potentially in the order of $3 billion.
Whilst everyone agrees Microsoft is no saint the fact of the matter is Novell and Wordperfect got beaten by aggressive pricing and marketing rather than significant operating system level anti-competitive action. Microsoft gained market share by aggressively dropping the price of Office to the point that it was less than half that of its competitors. Rather than following suit and matching dollar for dollar these moves Novell blindly followed their original pricing structures inherited from when they purchased Wordperfect.
Novell’s past business blunders aside, given Microsoft’s recent showing in the courts you would have to say its an even money bet that some financial compensation arises from this case. Whether it is in the order of $3 billion is unlikely but even a quarter of that amount is still a hefty sum. Does there come a time when Microsoft executives look at Novell and decide it is cheaper to buy them outright than cough up massive legal fees and reparations?

A few years ago the idea of Microsoft buying Novell would be dismissed on anti-competitive grounds, but these days Microsoft faces stiff competition from the likes of Red Hat, IBM, Sun, Oracle and of course Google. Even in recent years the two companies have hardly been competing against each other. The controversial agreement struck a few years ago between the two has seen them in coopetition rather than competition without so much as a mumble from regulatory bodies.
Given Novell’s current financial position if a $3 billion payout were on the cards it is not a huge leap to suggest that Microsoft simply buy them out rather than buy their forgiveness. Whilst it would take more than $3 billion to buy the company it would not take much more (relatively speaking) considering Novell has a current market cap of $2.1 billion. Also from a shareholder’s perspective an acquisition is much better than a payout as their investment is preserved and built upon instead of going to lawyers and the opposition.

read more | digg story

What would happen if Microsoft actually bought out Novell?


I started to think today that the implications to the Linux / UNIX world would be substantial, with Microsoft working so close with Novell. With the recent ruling that SCO no longer owns the rights to UNIX makes me wonder. Since Novell is now the owner of UNIX, what game is Microsoft really playing? Will they possibly buyout, merge or work even closer with Novell, creating a Microsoft Linux hybrid? What would happen if Microsoft ended up owning UNIX? Now that would be funny, and not at the same time. But then again, I am probably thinking pie in the sky. With Vista out of the blocks at a snail’s pace, will they opt to focus on Linux, lessening the impact on their OS business. This is probably more complicated now, since the release of GPLv3; however it will be extremely interesting to see what they decide to do over the next few years. My guess is that they simply do not want to put all their eggs in one basket, since they are being attacked from all sides. If Microsoft even purchased Novell, they probably would not be interested in SUSE anyway. More than likely they are now interested in the prospects of owning the rights to UNIX. It is probably more complicated then this, but who knows. I will leave that to lawyers and insiders to figure out. The fact is Microsoft is interested in making money and the investment in Novell is not sometime to take lightly. Microsoft must do something soon, and diversify; finding new streams of revenue. They will need new vision, thinking outside of the box. In the end, they may have actually play their cards right. Otherwise, they will simply be another point in history.

 

By: Andy MJ
a.k.a “The GTA Patriot”
Toronto, Ontario