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Technology Stocks : INPR - Inprise to Borland (BORL)

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To: Lewis Edinburg who wrote (4772)3/24/2000 9:45:00 AM
From: Maher Sid-Ahmed  Read Replies (2) of 5102
 
Re: "Can anyone state more elegantly why this acquisition is such a bad idea for Inprise?"
Corel has been bleeding money for at least the last two years, and they predict that this will go on for the next two quarters. Their loss in the last quarter is ~$19 million. INPR on the other hand has predicted it will return to profitability within a quarter. If the two companies merge there is no way the combined entity can ever produce a profit. INPR has never made $19 million profit to cover for a $19 million loss of CORL. On its own INPR can maybe make a million or two profit and this will signal to the street that INPR has turned to a profitable company. This along with its development tools for the enterprise plus its ASP solutions and consulting work in the enterprise arena, INPR on its own can really rock. CORL on the other hand is just spoiled goods and in the so called merger they are in full control, and who in his right mind wants MC as his CEO. So in conclusion this merger stinks.
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