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Forbes: Could SGI Be A Takeover Target?

Mar 03, 2000, 21:25 (1 Talkback[s])
(Other stories by David Einstein)

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"Last April, at the time it adopted its shortened name, SGI decided to concentrate on selling powerful Unix servers, which comprise nearly half its business. The Wintel program was put on the backburner, and in August the company put Cray up for sale. Then, early this year, SGI got on the Linux craze, announcing new Web servers sporting Intel Pentiums and the Linux operating system."

"By jettisoning Cray, SGI may have made itself a more attractive candidate for a takeover. A suitor could look forward to getting first-rate clustering technology, SGI's vaunted graphics capabilities, and its growing expertise in Linux."

"The thinking at this point is that the most likely buyer would be a company like VA Linux (nasdaq: LNUX), the maker of Linux-based workstations. Acquiring SGI would give that young company established engineering skills, plus entry into businesses that already use SGI systems."

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