“Under the deal, Inprise will become a subsidiary of software
maker Corel in a stock transaction valued at $2.44 billion, the
companies said.”
“Separately, the two firms have struggled against the Microsoft
juggernaut. With Microsoft undercutting prices, Inprise, maker of
tools that help developers create e-commerce Web sites and business
software, has seen its revenue and market share decline over the
years. Similarly, Corel has struggled trying to sell software
suites in a market dominated by Microsoft Office.”
“But during the past year, Inprise and Corel have latched onto
Linux, a rival to Microsoft’s dominant Windows operating system,
and as a result, both have seen their sagging stock prices improve.
Together, executives from the newly merged company believe they
have found a market niche that can turn their fortunes around. But
industry analysts are skeptical, saying the two companies still
face challenges.“