Opinions Abound on Novell/SUSE Deal
Nov 05, 2003, 17:00 (8 Talkback[s])
(Other stories by Charles Cooper, Glenn Stone)
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CNET: The Linux Factor
"The end was predictable: Noorda was sent packing, and
management rid itself of all his handicraft--at fire sale prices,
to boot. Novell never recovered from its stumble, and the pink
slips multiplied as losses mounted. Bob Frankenberg, Joe Marengi
and Eric Schmidt all took turns trying to revive the company, but
it was largely viewed as another piece of roadkill crushed by
"But current CEO Jack Messman has come up with an unconventional
strategy that can be summed up in one word: Linux..."
Linux Journal: View from the Trenches: Goodbye SuSE?
"But wait a minute. What does this really mean, for us ordinary
folk? Well, for starters, let's read the third paragraph of the
"Novell today also announced that IBM intends to make a $50
million investment in Novell convertible preferred stock. In
addition, Novell and IBM are negotiating extensions to the current
commercial agreements between IBM and SUSE LINUX for the continued
support of SUSE LINUX on IBM's eServer products and middleware
products to provide for product and marketing support arrangements
related to SUSE LINUX. Both of these agreements will be effective
when the acquisition of SUSE LINUX by Novell is completed.
"Now, think about that. Novell paid $210 million for SuSE, cash
on the barrel-head. It had way more money than that figure in the
bank, and the company is debt-free, despite having bought Ximian
earlier this year. Novell easily could have completed the
acquisition without IBM's help. And it's not like either
transaction was anything less than amicable. SuSE admitted in the
post-sale press conference that they wanted to partner, and the
fact that the IBM transaction is preferred stock has 'approval'
written on the face of it. So, in essence, this is a friendly