09.24.10

Gemini version available ♊︎

Novell Down 7% Today, Buyers Deemed Unsuitable, and Sale Value Estimated at $2.8 Billion

Posted in Europe, Microsoft, Novell, Red Hat, Virtualisation, VMware at 3:40 am by Dr. Roy Schestowitz

Novell sale - impact on stock

Summary: Some of the very latest developments in Novell’s sale saga and interpretation from various sources

NOVELL is at the stage where it must sell due to expectations from clients and investors (there is apparently an offer on the table). Steven J. Vaughan-Nichols says, based on reporting from Reuters, that “VMware’s Novell SUSE Linux buy out runs into a snag”. The thing about Novell is that the shares fell (Novell, Inc. (NOVL.O) was down $0.43/-6.61% yesterday with an additional -0.33% after hours) because a sale might not be so immediate.

Reuters wrote about this fall, Susan said that “Novell acquisition delayed over legacy assets”, and the main report says that Novell is looking at more options: “The auction of Novell’s (NOVL.O) NetWare and identity management products is dragging as rivals appear more willing to pay up for the software maker’s crown-jewel Linux operating system unit, sources familiar with the matter said on Wednesday.

“Novell’s board, which hired JPMorgan in March to look at strategic options for the whole company, is unwilling to part with its best performing unit SUSE Linux alone and be left with a shell of legacy assets, according to three sources, who requested anonymity because they were not authorized to speak on the record about the auction.”

“Novell is where companies and products came to die.”Novell is just too diverse for a simple sale to be made. Ron Hovsepian made things worse by further diversifying the company with the acquisition of other companies like Managed Objects (whose CEO quit Novell last year). It turns out she was not alone: “Prior to Playxpert, Manning was the vice president of product management at Managed Objects. Managed Objects was the industry leader in Business Service Management and was later acquired by Novell.”

Novell is where companies and products came to die. Hovsepian just had little clue what he was doing with the company and his technical chief/strategist quit the company earlier this year. Now the company is in a freefall, except of course if one considers the impact of the company’s sale on the stock. There are still many more articles about that sale (e.g. [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12]). “Novell Could Sell for $2.8B,” says this one report and the effect on the stock got covered in [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18].

One writer from IDG argues that “VMware Could Abandon Anti-OS Crusade with Novell Linux Purchase” (Groklaw might beg to argue that this "crusade" is fake).

But analysts say VMware’s apparent attempt to purchase SUSE Linux makes perfect sense, and will help VMware compete against Microsoft (MSFT), its primary rival, and also Red Hat, which claims VMware can’t offer a full cloud computing stack because it lacks an operating system.

If Microsoft Windows retains its current dominance, VMware may not be able to compete against Microsoft in the long run, says Burton Group analyst Chris Wolf.

Sam from ITWire wonders, “[i]f VMware buys Novell, what happens to the Microsoft deal?”

Novell sponsors this project with people, hardware and services. But OpenSUSE has its own board and along with community contributors has put together what it calls a list of strengths, weaknesses, opportunities and threats. It makes for extremely interesting reading.

How will VMware, which was once suspected of using code from Linux in its ESX Server and not releasing the source, handle the crowd of developers at OpenSUSE who are quite clearly not a docile lot?

There are other interesting questions that present themselves. What happens to Mono and Moonlight, both projects run by Miguel de Icaza, a vice-president at Novell, which aim to make it easier for Microsoft products to play with Linux, in particular SUSE?

Novell has long used these projects as a means of claiming better interoperability with Microsoft. Once VMware has its own operating system – as it would if it bought Novell’s Linux business, why would it care for projects like Mono and Moonlight?

Both projects, it must be added, have not increased Novell’s popularity among the free software and open source software communities. VMware can do without negative karma in these communities – it already has plenty.

It is long a article that does not actually answer the question presented in the headline. It is not entirely clear how such an acquisition would affect the Novell-Microsoft deal. As far is SUSE is concerned, the same rules would probably apply (e.g. the Microsoft-stuffed VM_Bware paying Microsoft for GNU/Linux sales).

OStatic incorrectly characterises Novell as an open source company and asks, “If VMware Buys SUSE Linux, Could Red Hat Feel the Heat?”

Could VMware indeed be a part of an acquisition plan for Novell, and if so, could that spell bad news for Red Hat?

Red Hat, of course, has been a market darling for some time now, continuing to post quarter after quarter of good financial results based on its basic business model of supporting Linux. It has always competed with Novell in the Linux business, but Novell’s Linux business has had spotty results in recent years, due in part to its partnership with Microsoft and dependence on Microsoft to help turn up Linux deals. Now, according to some, Novell may have only a few weeks left as an independent company.

Daniel Kusnetzky, a virtualisation guru, looks at ramifications of VM_Bware buying SUSE:

If the worst case scenario that is possible occurs, I’m expecting to hear cries for interoperability and cross platform migration that will be similar to the cries heard in the 1960s and 1970s. Are we doomed to repeat this cycle over and over again?

Novell is about to be sold; the question is to who and under what conditions.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

DecorWhat Else is New


  1. IRC Proceedings: Thursday, December 02, 2021

    IRC logs for Thursday, December 02, 2021



  2. Links 3/12/2021: Nitrux 1.7.1 and Xen 4.16 Released

    Links for the day



  3. Links 2/12/2021: OpenSUSE Leap 15.4 Alpha, Qt Creator 6

    Links for the day



  4. The EPO's “Gender Awareness Report”

    There’s a new document with remarks by the EPO’s staff representatives and it concerns opportunities for women at the EPO — a longstanding issue



  5. IRC Proceedings: Wednesday, December 01, 2021

    IRC logs for Wednesday, December 01, 2021



  6. EPO Staff Committee Compares the Tactics of António Campinos to Benoît Battistelli's

    The Central Staff Committee (CSC) of the EPO talks about EPO President António Campinos, arguing that “he seems to subscribe to the Manichean view, introduced by Mr Battistelli…”



  7. Prof. Thomas Jaeger in GRUR: Unified Patent Court (UPC) “Incompatible With EU Law“

    The truth remains unquestionable and the law remains unchanged; Team UPC is living in another universe, unable to accept that what it is scheming will inevitably face high-level legal challenges (shall that become necessary) and it will lose because the facts are all still the same



  8. Links 1/12/2021: LibrePlanet CFS Extended to December 15th and DB Comparer for PostgreSQL Reaches 5.0

    Links for the day



  9. EPO Cannot and Will Not Self-Regulate

    The term financialisation helps describe some of the activities of the EPO in recent years; see Wikipedia on financialisation below



  10. [Meme] Germany's Licence to Break the Law

    Remember that the young Campinos asked dad for his immunity after he had gotten drunk and crashed the car; maybe the EPO should stop giving diplomatic immunity to people, seeing what criminals (e.g. Benoît Battistelli) this attracts; the German government is destroying its image (and the EU’s) by fostering such corruption, wrongly believing that it’s worth it because of Eurozone domination for patents/litigation



  11. EPO Dislikes Science and Scientists

    The EPO's management has become like a corrupt political party with blind faith in money and monopolies (or monopoly money); it has lost sight of its original goals and at this moment it serves to exacerbate an awful pandemic, as the video above explains



  12. Links 1/12/2021: LibreOffice 7.3 Beta, Krita 5.0, Julia 1.7

    Links for the day



  13. Links 1/12/2021: NixOS 21.11 Released

    Links for the day



  14. IRC Proceedings: Tuesday, November 30, 2021

    IRC logs for Tuesday, November 30, 2021



  15. Links 1/12/2021: Tux Paint 0.9.27 and WordPress 5.9 Beta

    Links for the day



  16. [Meme] EPO Administrative Council Believing EPO-Bribed 'Media' (IAM Still Shilling and Lying for Cash)

    IAM continues to do what brings money from EPO management and Team UPC, never mind if it is being disputed by the patent examiners themselves



  17. The EPO's Mythical “Gap” Has Been Found and It's Bonuses for People Who Use Pure Fiction to Steal From Patent Examiners

    The phony president who has the audacity to claim there's a budget gap is issuing millions of euros for his enablers to enjoy; weeks ahead of the next meeting of national delegates the Central Staff Committee (CSC) tells them: "Events show that the delegations’ concerns about functional allowances have materialised. The lack of transparency and inflation of the budget envelope gives rise to the suspicion that high management is pursuing a policy of self-service at the expense of EPO staff, which is difficult to reconcile with the Office’s claimed cost-saving policy, and to the detriment of the whole Organisation."



  18. Video: Making the Internet a Better Place for People, Not Megacorporations

    Following that earlier list of suggested improvements for a freedom-respecting Internet, here's a video and outline



  19. Links 30/11/2021: KDE Plasma 5.23.4, 4MLinux 38.0, Long GitHub Downtime, and Microsoft's CEO Selling Away Shares

    Links for the day



  20. A Concise Manifesto For Freedom-Respecting Internet

    An informal list of considerations to make when reshaping the Internet to better serve people, not a few corporations that are mostly military contractors subsidised by the American taxpayers



  21. Freenode.net Becomes a 'Reddit Clone' and Freenode IRC is Back to Old Configurations After Flushing Down Decades' Worth of User/Channel Data and Locking/Shutting Out Longtime Users

    Freenode is having another go; after “chits” and “jobs” (among many other ideas) have clearly failed, and following the change of daemon (resulting in massive loss of data and even security issues associated with impersonation) as well as pointless rebrand as “Joseon”, the domain Freenode.net becomes something completely different and the IRC network reopens to all



  22. Jack Dorsey's Decision is a Wake-up Call: Social Control Media is Just a Toxic Bubble

    The state of the World Wide Web (reliability, preservation, accessibility, compatibility etc.) was worsened a lot more than a decade ago; with social control media that’s nowadays just a pile of JavaScript programs we’re basically seeing the Web gradually turning into another Adobe Flash (but this time they tell us it’s a “standard”), exacerbating an already-oversized ‘bubble economy’ where companies operate at a loss while claiming to be worth hundreds of billions (USD) and generally serve imperialistic objectives by means of manipulation like surveillance, selective curation, and censorship



  23. IRC Proceedings: Monday, November 29, 2021

    IRC logs for Monday, November 29, 2021



  24. Links 29/11/2021: NuTyX 21.10.5 and CrossOver 21.1.0

    Links for the day



  25. This Apt Has Super Dumbass Powers. Linus Sebastian and Pop_OS!

    Guest post by Ryan, reprinted with permission



  26. [Meme] Trying to Appease Provocateurs and Borderline Trolls

    GNU/Linux isn’t just a clone of Microsoft Windows and it oughtn’t be a clone of Microsoft Windows, either; some people set themselves up for failure, maybe by intention



  27. Centralised Git Hosting Has a Business Model Which is Hostile Towards Developers' Interests (in Microsoft's Case, It's an Attack on Reciprocal Licensing and Persistent Manipulation)

    Spying, censoring, and abusing projects/developers/users are among the perks Microsoft found in GitHub; the E.E.E.-styled takeover is being misused for perception manipulation and even racism, so projects really need to take control of their hosting (outsourcing is risky and very expensive in the long run)



  28. Links 29/11/2021: FWUPD's 'Best Known Configuration' and Glimpse at OpenZFS 3.0

    Links for the day



  29. President Biden Wants to Put Microsofter in Charge of the Patent Office, Soon to Penalise Patent Applicants Who Don't Use Microsoft's Proprietary Formats

    The tradition of GAFAM or GIAFAM inside the USPTO carries on (e.g. Kappos and Lee; Kappos lobbies for Microsoft and IBM, whereas Lee now works for Amazon/Bezos after a career at Google); it's hard to believe anymore that the USPTO exists to serve innovators rather than aggressive monopolists, shielding their territory by patent threats (lawsuits or worse aggression) and cross-licensing that's akin to a cartel



  30. Microsoft GitHub Exposé — Part VIII — Mr. Graveley's Long Career Serving Microsoft's Agenda (Before Hiring by Microsoft to Work on GitHub's GPL Violations Machine)

    Balabhadra (Alex) Graveley was promoting .NET (or Mono) since his young days; his current job at Microsoft is consistent with past harms to GNU/Linux, basically pushing undesirable (except to Microsoft) things to GNU/Linux users; Tomboy used to be the main reason for distro ISOs to include Mono


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts