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Linux Journal: No Merger: Corel and Borland/Inprise call it off

May 18, 2000, 16:53 (3 Talkback[s])
(Other stories by Doc Searls)

"...the whole thing started sinking in March, when Corel released its quarterly financials, with a loss of $12.4 million, or 19 cents a share, on sales of $44.1 million, along with warnings of probable losses over the next two quarters. Then, in a later securities filing, Corel said it would face a cash shortage in the next three months if the merger didn't proceed or if other sources of financing didn't appear. In that same month, Robert Coates, chief executive of investment company Management Insights, resigned from the Inprise/Borland board in protest over the merger."

"...in a conversation this afternoon, Dale Fuller, Inprise/Borland interim president and CEO, was frank about the matter. "The thing turned into a boat anchor, and we're glad it's over and we can move on," Fuller said. Asked what killed a promising merger, Fuller replied, "I see three things that put the nails in the coffin for this deal. First, Corel missed their first-quarter numbers dramatically. Second, they announced that their next two quarters would be similar, which only made the problem worse. Third, they announced that they would be out of money in three months. And we saw no plan to do anything about it, except ride the wave down. Credibility and confidence derive from planning and execution. We weren't seeing that, and the stockholders weren't seeing that." The decision to call the deal off, however, was "a completely mutual decision," he added."

"Fuller still has kind words for Corel. "I think their products are very good, and the strategy of combining their products with ours was very good; but I think that strategy can go forward with all the other players anyway. We have a number of other players who want to work with us."

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