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The Register: Corel plus Borland plus Linux - is this the big one?

Feb 10, 2000, 18:59 (1 Talkback[s])
(Other stories by Graham Lea)

"Microsoft must be regretting that Corel's home page is able to quote MSNBC saying last month that 'Corel Linux is terrific'. Feelings at Fort Redmond must be less generous this week following news of the Corel merger with Inprise/Borland. Corel CEO Michael Cowpland sees his destiny as establishing Linux on the desktop on a big scale, but triumphalism about a 'Linux powerhouse' is dangerous in an ethos where power sharing is preferred. The deal was negotiated in less than a month, and is being termed a 'merger of equals'. "

"Corel has moved into profit, albeit thanks to a windfall from the Canadian tax man at a very welcome moment. Borland had expected to move into profit in Q3 this year, and now thinks this could be earlier because of savings resulting from the deal. Since the acquisition is being done with paper, Corel will gain cash as a result, which should make possible a better marketing infrastructure and more advertising."

"There is some truth in Cowpland's claim that there is no similar company in the Linux space, but with combined 1999 revenues of only $418 million, there is a very long way to go before Corel approaches the Suns or Oracles. Cowpland rightly points to the tremendous upside potential, but that does not mean that Corel can easily increase its revenue very quickly because of the low price of Linux products."

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