Style,
I agree with what you said about market share. And here is an added twist.
In the PC market, what does CPQ crave more than anything else? Market share! It is (or was) top dog last time I looked (don't know if dell has beat it out yet) and it will cut prices as needed to keep and capture market share. Just like INTC vis-a-vis CYRIX and AMD.
Now, what if a deal has been cut with CPQ. CPQ -- given its corporate history -- wants a networker with market share, market share and more market share. If that means price cuts in the near term, so be it.
Furthermore, at this juncture (assuming a deal has been inked), what does ASND care if it cuts prices? The buyer wants market share, ASND will give it market share. After all, a price cut doesn't really impact ASND's share price (if the buyer is paying 8 times sales, the share price matters little).
Anyway, just a thought. Still, I have to admit I have a hard time seeing CPQ as a networker. But as Ejabat said, and I quote, "No comment. Anything in this market is doable. No comment."
Gary Korn |
