Novell for Sale?

(hey, that rhymes)

Report: Novell accepting bids from up to 20 companies](Report: Novell accepting bids from up to 20 companies - The H Open: News and Features)

According to a report in the Wall Street Journal, this week Novell, which was put up for up for sale after an unsuccessful bid from a hedge fund, is taking bids from up to 20 companies. The process is expected to result in the sale of the Linux and identity management company, although it is unknown whether this would be as a single entity or if the company’s four business units would be sold separately.

The Register also mentions the NY Times reporting this in Novell seeks rich suitors](Novell seeks rich suitors • The Register).

Interesting to know. Anybody have any takers on potential buyers?

This could have a wide-impact as Novell has a number of technologies used in Linux (oS and other distros); Go-OO & Mono comes to mind. Mono itself would shake things up some.

Anybody have any more information on this?

I think I have about $20, think they’ll sell?rotfl!

FTA

Most, if not all, of the companies expected to lodge serious bids are private equity firms

Looks like it’ll be a private equity firm, not anybody we’d hope for right away.

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

Maybe later?

Microsoft probably.

It would be cool if Dell, IBM or HP got it… better not be frigging oracle, considering their track record I think most here would rather have Canonical buy it as the Ubuntu hate is strong here but the controversy of Oracle eclipses that I think.

IBM or Lenovo would get my vote, at least then Thinkvantage would be available for openSuse.

On Fri, 21 May 2010 01:16:01 +0000, TaraIkeda wrote:

> Microsoft probably.

As I’ve said before, not likely to happen. Why? One word: Antitrust.

Jim

Jim Henderson
openSUSE Forums Administrator

I think it would be cool if Dell ended up purchasing Novell.

I can’t say i see good future for Novell but at least openSUSE will live on.

My cynical view is that this is an effort by the board of directors and CEO/CFO to save their jobs.

Having turned down one takeover offer, they now risk the wrath of the shareholders. Hence they need to show they are actively trying to increase shareholder value, and this is one way to do it. Whether they are actually planning to recommend acceptance of any offer that may come out is another matter.

The sale also doesn’t have to be all-in-one.

When there was talk about Novell being bought before, there was a pretty good article that outlined how even before the sale is done, other companies may come and the acquiring company and that one agree to a sale once Novell was bought.

In this I can see Microsoft picking up Mono or some of the other network technologies while staying away from the anti-trust fires.

Along those lines, maybe Red Hat or IBM would buy just the Unix (copyright, license,… not sure what it is, but I think you know what I’m talking about). Who knows, maybe the FSF or some other entity would purchase it.

IBM is one thought, or HP. I can see HP doing that so they can offer the hardware (server) and OS (SUSE) and integrate the Mono with their recent WebOS purchase. At least they have shown signs that they are willing to expand.

Agreed, though, I think this move is to keep the top brass from being ousted for rejecting the previous offering since there is no real plan or focus on how to improve the business.

What could be awesome is to spin off some pieces, though I doubt that would happen.

Isn’t that just what any competent “asset stripper” would do? Line up its market before making the purchase. :\

I guess. I’m not sure how this normally progress but that makes sense.

I’m still holding onto that shred of hope that whomever purchases Novell, this isn’t the end of Novell but rather a “reinvention”.

It may require some serious cuts in the top brass, but that’s kinda what is needed to be done.

On Fri, 21 May 2010 06:16:01 +0000, oldcpu wrote:

> My cynical view is that this is an effort by the board of directors and
> CEO/CFO to save their jobs.
>
> Having turned down one takeover offer, they now risk the wrath of the
> shareholders. Hence they need to show they are actively trying to
> increase shareholder value, and this is one way to do it. Whether they
> are actually planning to recommend acceptance of any offer that may come
> out is another matter.

I think there’s a certain amount of logic in that; whenever something
like the Elliot offer happens, lawyers start lining up for shareholder
lawsuits. That forces the board and management of a company to explore
options they perhaps don’t want to, just to cover themselves.

Jim (speaking as myself, of course)


Jim Henderson
openSUSE Forums Administrator

On Fri, 21 May 2010 13:26:01 +0000, dragonbite wrote:

> It may require some serious cuts in the top brass, but that’s kinda what
> is needed to be done.

Generally that always happens in M&A talks (I’ve been involved in a
couple of those in the past - you always have redundant positions,
finance, legal, execs, etc - and it doesn’t make sense to pay twice to do
those jobs.)

Jim


Jim Henderson
openSUSE Forums Administrator

That makes two or more of us hoping for that. I think a great many do.

Part of my thinking is that the management that got the company into the situation where it is getting acquired obviously didn’t succeed before. Why keep them there?

That isn’t to say there are not qualified members that should stay there, just that to get into a position like this means something isn’t working out.

Oh, and I thought of another buyer… Canonical can purchase the Mono assets! I think they are the second biggest adopters of the Mono technology (after Novell that is)

On Fri, 21 May 2010 17:26:01 +0000, dragonbite wrote:

> Part of my thinking is that the management that got the company into the
> situation where it is getting acquired obviously didn’t succeed before.
> Why keep them there?

Well, sure, but at the same time, you don’t need two CIOs, for example,
that’s most often why the positions are made redundant.

I worked for one company that was acquired and the COO after the merger
came from the company I worked for rather than the company that acquired
us.

Jim


Jim Henderson
openSUSE Forums Administrator

Topic just hit /. too , makes me wonder what could happen to opensuse project ?

Slashdot Linux Story | Novell Reportedly Taking Bids From Up To 20 Companies

On Sun, 23 May 2010 15:26:02 +0000, Heremod wrote:

> Topic just hit /. too , makes me wonder what could happen to opensuse
> project ?

Unlikely that anything would happen to openSUSE, since the project is
separate from Novell.

Jim

Jim Henderson
openSUSE Forums Administrator

I’m sure oS would continue, but aren’t some of its main developers on the Novell payroll? Novell has had a roll in setting the path for oS. I can’t believe there wouldn’t be changes.