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  • From: Steven Champeon <schampeo AT hesketh.com>
  • To: InterNetWorkers <internetworkers AT lists.ibiblio.org>
  • Subject: [internetworkers] novell, SuSE, Red Hat - seeking a bit of learned analysis
  • Date: Wed, 5 Nov 2003 13:35:32 -0500


OK, so Novell just bought SuSE for $210 million. I see this as good for
the Linux community, a recognition that Linux is really being taken
seriously and will be even more so in the future.

So why did RHAT take an 8% dive today and even larger dive yesterday?

I can only imagine a few scenarios:

- investors had hoped for a merger/buyout of Red Hat by Novell?

- Novell paid far too little for the #2 company, and/or they see RHAT's
$2B market cap as overvalued?

- investors see this as a bad sign for Red Hat because now their #1
competitor has the corporate backing of Novell?

- it's a temporary thing caused by people ditching RHAT for NOVL?

Any clues? I can't make sense of it.

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