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Novell Reportedly Taking Bids From Up To 20 Companies

Degrees writes "Although Novell rejected the bid from Elliott Associates earlier this year, reports now indicate Novell has decided to embrace the inevitable. According to the Wall Street Journal (sub. required): 'As many as 20 companies have expressed interest in Novell, according to people familiar with the matter. Most, if not all, of the companies expected to lodge serious bids are private equity firms. ... Novell has four separate businesses, each of which could be attractive to a rival technology company. However, it's unlikely that a tech company would bid for all of Novell, these people said. Private equity firms, however, could break up Novell and either sell off the pieces or run them as standalone businesses.' Are there any companies that don't have an enterprise grade Linux distribution, and ought to? Ditto workstation management, directory services, legacy email, and virtualization suite?"

7 of 124 comments (clear)

  1. Re:I hope this doesn't harm the Linux distro marke by ozmanjusri · · Score: 4, Insightful
    Obviously a sale of Novell doesn't necessarily imply any change for their Linux business

    Actually, I expect one of their main partners to strongly encourage a litigious patent troll to buy them.

    They would be in a very strong position to torpedo Linux adoption for years, if not decades.

    --
    "I've got more toys than Teruhisa Kitahara."
  2. Welcome to the modern Capitalism (FinCap) by boorack · · Score: 5, Insightful

    Then i WOULD be nervous. If Novell accepts bid from private equity firm, then we can say goodbye to them. Typical scenario in company takeover by private equity firms is extracting whatever capital company has by any means. In such scenario you can safely assume that Novell will be stripped out of things having some value (that can be easily sold), saddled with huge debt and private equity fund will extract all this capital via some form of (huge) dividend. Remaining carcass is typically sold to some fool investor who then sees it bankrupting. While I don't like Novell too much (after that Microsoft debacle), I'm also worried. I suppose that some of their patents will be sold to whoever offers better price. If it will be some patent troll , then we may see problems ahead. Private equity fund (a.k.a financial vulture) managers won't give a crap about it.

  3. Re:Microsoft by fustakrakich · · Score: 4, Insightful

    nteresting idea, but I'm not seeing a business argument for it.

    Patents! Patents! Patents!

    --
    “He’s not deformed, he’s just drunk!”
  4. IBM by John+Hasler · · Score: 4, Insightful

    > Are there any companies that don't have an enterprise grade Linux
    > distribution, and ought to?

    IBM, not that I know of any evidence that they are interested.

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    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  5. Re:Karma by think_nix · · Score: 4, Informative

    As far as I'm concerned, Novell stabbed the community in the back. I don't use Novell products and neither should you.

    Funnily enough when Hovsepian took over as CEO in 2003 I remember him saying how much Novell would do for the Linux Community. Then a few years ago this Interview.

    Lets look at what he did for the Linux Community and for the Developers he thinks are so great:

    Novell Plans To Lay Off 20% Of Workforce

    Novell offshores for cheap developement

    Novell cuts SuSe Develpers

    Suse Developer Layoffs

  6. Re:Karma by kestasjk · · Score: 4, Interesting

    But aren't they also contributing significantly to the Mono project?
    (Before someone says "Mono is evil and helps MS" I'm not so sure. If it does Wine certainly does too, but no-one raises a fuss about Wine, and being able to run my .NET apps on Linux definitely seems like a good thing for reducing ties to Windows to me.)

    They did make a deal which, in part, involved patent disputes with Microsoft regarding Linux, but unless there's a way that it "legitimizes" those claims in a legally tangible way I don't see why that's a problem. (And I haven't seen any reason why Novell getting protection against patent suits from Microsoft would affect the legal status of code external to Novell. It seems like paranoia to me.)

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  7. Re:Karma by TheRaven64 · · Score: 4, Insightful

    If you're not using a Linux system, but are reading Slashdot, you've probably used OpenOffice.org. Most of the work on making it less slow was done by Novell. Last time I checked, 80% of OO.o contributions came from Sun, 15% from Novell, and 5% from everyone else combined.

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