Novell & SUSE In Link Up?
dmorelli writes "Since it seems to be a SuSE news day, here's something from Friday this past. Novell tried and failed to buy SuSE, according to the
Linux Business week story."
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What came out of that merger?
Consensus is good, but informed dictatorship is better
here's something from Friday this past.
Yoda, you speak like!
What does this say, exactly, about Novell's current strategy, that they consider Linux so useful to their current plans that they would attempt to buy SUSE?
If they owned SUSE, what most likely would they do with it?
Novell 7 SuSe In Link Up?
Looks like they succeeded in outlawing the shift key after all."Wow, you're like some kind of superhero able to ward off happiness and success at every turn."
-- Ryan Stiles
It's a handy typing tip!
I can't help but feel that the german government owning shares of a company like SUSE seems to be a conflict of interest. I don't believe that government should be able should own any controlling amount of stock of a company they could make or brake. (ie: cities in germany switching to linux over MS)
I have a Cig, but do you have a light?
I can still hear the faint echo's of Novell suits explaining how they were going to destroy Microsoft with Netware and the latest directory services product. These people were scarily clueless then...what has changed?.
Novell essentially brought us the current incarnation of SCO, haven't they done enough to "help" the Linux/OS community?
that would have been a pretty good fit for what they're currently trying to do. Make no mistake - Novell has some of the best enterprise management software in the industry. Linux definitely needs this.
Oh well, they'll just release their own distro of Linux now (called Netware 7).
"the German government, which reportedly owns something like 30% of SUSE ($30 million worth), is supposed to be the speed bump." WTF? My Goverment owns 30% of SUSE? Finally they do something useful with my tax money! Nice. Probably its just a goverment loan but 30% of all shares is quite a lot. I wonder if it was a political decision to finance a OSS-Company. Has anybody more info on this?
According to the article, suse is worth 100 million. They were offered 120 million.
Why didn't they accept?
Open Source Java Web Forum with LDAP authentication
Why not?
"And now, Frank N. Furter, your time has come. Say 'goodbye' to all of this, and 'hello'... to oblivion!"
Also, $120M sounds a very cheap for a company of this size. Red Hat, not quite twice the size by employees, is valued at over 2$ billion.
SuSE Puts out the best distro of Linux (IMHO) and my kneejerk reaction is sheer horror. I know that's not logical, but anything that might change the direction of the company scares me. I just installed SuSE 9 over the weekend and it's a wonderful product. My selfish desire is for SuSE to be left alone and to continue to produce and improve SuSE Linux. I don't want to have to change distros again!
Yes, we all know the reasons why the GPL prevents Red Hat from becoming Microsoft 2. I rather suspect that IBM knows it too, no matter how clueless the article's author is. (Yes, I read the article, so I know your post isn't offtopic at all).
.well, good question. Microsoft's hit man maybe? The Blob?
Thing is that from IBM's point of view they're just trying to become something vaguely like IBM again.
From Red Hat's, Novell's and some other's point of view though I rather suspect they're trying to become the new Sun since Sun seems to have lost its way.
And then there's SCO, who is trying to not be a Linux company and is aiming for. .
Antarctica sounds like a good resolution to that matter.
KFG
According to the article, suse is worth 100 million. They were offered 120 million. Why didn't they accept?
Because valuing a company is as much art as it is science. Especially for companies like SuSE whose assets are largely intangible. They don't have much in the way of hard assets like manufacturing equipment or buildings. They have no proprietary code to speak of. Their only real assets are their brand name, whatever cash they have and the people they have working for them.
So how do you value that? It's tough. Companies are considered to be worth the present value of all their future cash flows. But how fast is SuSE going to grow? What sort of margins will they pull down? What does the competitive landscape look like? Will they grow steadily or will they grow fast and then slow down? I don't know about you, but my crystal ball isn't that good.
It's not a trivial problem to value a company. You can't answer it just by checking their market capitalization. That's just the market's current concensus on the value of the equity in the company. But debt holder, preferred stock holders and the government (taxes) all have claims to the cash flows of the company that come before the common stockholders. And the market doesn't even get the equity part right all the time. Witness the recent tech bubble bursting.
So in short, there probably was a difference of opinion on the valuation. If I think my business is worth $150 million and you think it's worth $100 million, who is right? Hard to say. It's also possible that they didn't sell just because the key shareholders didn't like the buyer. Happens all the time. Maybe the terms of the deal weren't good. If I'm the buyer and Novell is offering me stock, I'm going to think about it real hard. Novell's stock isn't exactly blue-chip. What happens if I sell and Novell tanks? Could be SuSE management wanted cash and Novell wasn't offering.
In short there are lot of reasons why it fell through. Some reasons are very sensible, some aren't. Why they turned them down? I have no idea, but I can think of a lot of possible reasons.
Maybe the author of the original article was thinking about the eMillennium fund - partly owned by Deutsche Bank, which is not by any means a government entity. It only sounds so (the government bank is called the Deutsche Bundesbank, and it does not do investments).
US Democracy:The best person for the job (among These pre-selected choices...)
They do have they own distro and is based in RedHat. :(
Cisco has it's own dristro to. I know this for a fact because a couple of months ago I enterviewed for a job building a Dristro for Cisco under a IBM contract.
Sadly they hired some one else
BSD licensed software can't be stolen....
The underlying assumption that you buy a company to get its technology is so wrong, even for a technology company. Brand or name recognition, distribution and marketing infrastructure, customer base, alliances / partnerships / connections are in all but the rarest cases far more valuable than any technology gained by a merger or acquisition.
What's a sig?
Also, we have a rolling hardware upgrade program here and too many viable PCs just end up in the skip. The 300MHz PIIs w/64Mb RAM are next for the chop, but they'd be totally acceptable general office-use machines if they ran GNU/Linux. Tending to the luxurious, in fact. My home PC, for example, is a 133MHz Cyrix w/64Mb and I can't be arsed to upgrade, the point being that the economy of Slackware 9 (or whatever the distro of the minute) let's me get away with not being arsed.
You can see the appeal of it, really. Free at last etc.
NoVA.
- The Executive Commitee for Novell looks entirely different than it did when it put MS as enemy #1.
- More than half of management underneath the executive committe has changed since then.
In other words 'These people' who where 'scarily clueless' are gone. I guess these 'suits' went to SCO for employment.