From Thom Calandra at CBS MarketWatch:
Reuters and Tibco: London's Reuters Group PLC
(RTRSY: news, msgs), like many media companies these days, is watching as its long-slumbering shares rise smartly. Several reports Monday suggested Reuters might sell new stock in its Instinet trading unit to the public next year.
Yet Reuters shares, which trade in London and as ADRs on Nasdaq, are following the rise of one of its technology holdings, business-software developer Tibco Software Inc. of California. (Reuters, as Dow Jones points out in an article, owns stakes in at least 10 companies that trade on stock markets.)
Since shares of Tibco (TIBX: news, msgs) took off earlier this autumn, shares of Reuters have followed suit. Reuters owns 62 percent of Tibco, which sports a market valuation of $10 billion vs. $20 billion for Reuters. Tibco CEO Vivek Ranadive is probably the Silicon Valley billionaire with the lowest profile.
Reuters' shares hit a recent low of 50 ¬ on Oct. 26.Since then, they've risen 66percent. In the same period,
Tibco shares have ignited, rising 411 percent. (See one-month comparison chart.) Tibco, for those of us caught unaware by the fury of the stock's rise, digitizes real-time information. Tibco (the company goes by TIBCO) uses something called The Information Bus (or TIB) to blend multiple streams of incompatible financial information, for instance. Then the data gets displayed on a monitor. Tibco claims that 80 percent of the world's financial information flows through the TIB.
On Monday afternoon, shares of Tibco gained 7 percent; shares of Reuters rose 4 percent.
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