Monday, November 6, 2006

What if Microsoft is turning its body?

I said Microsoft is turning its head here. Today if you type in "Microsoft, Novell, Agreement" in Google you'll get few million results. Perhaps this is the hottest topic in the IT World.

Reaction from the stock market is mixed about Novell's move. Checking out NOVL's market capitaliztion you'll see they are only 2.25b compare to MSFT's 282.43b. If MSFT is so positive about the marriage why don't they simply buy NOVL over? My naive insight is that this is not the right time to buy with NOVL's P/E at 332 times.

I think MSFT is taking a wait and see attitude as the pack is said to be valid until 2012. Intelligence of the crowd will determine MSFT's next move. If it works out and the customers like it and IT community approves it the cash rich MSFT can make this turn permanent easily.

Google's Eric Schmidt comes from Novell I wonder what is in his mind right now?

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