As a shareholder I would have preferred that approach as well...Simply "milk the cow"...cut costs, J-Builder Version 2, etc....
The cow had already been milked dry. There was little additional cost cutting that could be done without serious adverse impact on the company's operations (i.e., R&D cuts, further bleeding in areas like documentation and marketing). These new products, C++/J Builder, new Delphis, etc., can only do so much. We've seen, over the last year, that even with phenomenal sales these products cannot do what has to be done in a $99/unit environment.
In a business environment where nitwit investors look only as far ahead as the next quarter, I have a hell of a lot of respect for a management that is willing to bite the bullet. To anyone who is paying attention, this acquisition is a good thing for Borland in the long run. I just hope Del is able to resist the carrot Apple is dangling before him.
Borland is doing the right thing to get out of direct competition with MSFT on as many levels as possible. You just can't fight that savings account over at MSFT. I see VSGN as one more opportunity to do so. Besides, VSGN was cheap. |
