Slashdot Mirror
Thawte Bought by Verisign
ChrisKnight was of the many people that wrote with the story on news.com that VeriSign has purchased Thatwe Consulting. Purchase price was reportedly $575 million, although the deal must still be approved.
← Back to Stories (view on slashdot.org)
First of all, good move, Thawte. They've successfully maximized shareholder value. In other words, they've sold out at the right time. Verisign, having grabbed a lot of the big names, will probably go on to increase its market share; Thawte, having failed to, may be at the peak of its value - especially when, not if, the net stock bubble collapses.
:-), and a 200-lb gorilla, with enough marketshare, can drive the market into inferiority and incompetence quite easily. Look at the consumer operating system market if you don't believe me :-).
Bad move, Verisign. First of all, the net stock bubble is called a bubble for a reason. However, when acquiring other companies, you should buy for value or make acquisitions strategically. Does Thawte own anything, other than marketshare, that Verisign doesn't already have? In most mergers and buyouts, the purchaser usually ends up losing equity when the euphoria wears off. I doubt that this will be an exception to the rule.
I can deplore Microsoft's mania in acquisitions, but more often than not they acquire intelligently - taking out possible competitors, buying into new technologies. They don't acquire just for the hell of it. Paradoxically, they have too much money to do that.
Bad move, for the global net. Thawte is a South African company, and so the purchase takes an international venture with global reach and sucks it into the gaping maw of Silicon Valley. Not that there's anything intrinsically wrong with the valley. It's just that something sticks in my craw with one location dominating an entire industry.
Bad move, for everyone. A 200-lb gorilla in any industry is bad for business. A 200-lb gorilla in the security industry is worse. The security industry is based on trust (or at least mistrust)
--
--
There is no premature anti-fascism. -Ernest Hemingway
Please moderate this up!
You can submit your comments on this matter to:
newcase.atr@usdoj.gov
I have sent my comments and sent this email to my friends, do the same!
Verisign is sure to jack up their prices if and when the deal goes through. There should be a market for cheap certificates sold to small sites that want to be secure without paying a Verisign tax.
There's already open-source software out there for generating certificates. The other barriers to entry are:
1. Name recognition. If you're in charge of security at a medium to big size company, your chief goal is to protect your own ass. To that end, you'll spend the extra money to buy Verisign, because nobody ever got fired for using Verisign.
2. Being in the browser. This is a big one; your CA cert has to be pre-loaded into your user's browsers. This involves paying many thousands of dollars to MS and Netscape.
The other things you need to be a CA are:
1. Legal staff and Certification Practice Statement.
2. Clerks for researching and verifying identity.
3. A killer operations and security infrastructure to protect the CA's key and prevent unauthorized signing.
CAs can and should be a commodity. The thing to watch out for is Verisign introducing proprietary technology into their certificates, or making exclusive deals with the browser manufacturers.
I've always thought that Thawte did
a better job than Verisign. They are cheaper
too, I believe..(though it's been a while)..
They do NOTHING for you! They don't even
make your site more secure...
They are snake-oil salesmen, at best.
Watch as Bruce Schneier gives these jerks a firm talking-to: here
-- The Funk, The Whole Funk, And Nothing But The Funk
Consider the following:
This is bad news for consumers.