No, we don't "have to" get a stake in Seagate Software. Companies can either spin off divisions by "giving" their shareholders a stake, they can sell a stake to another company, or they can sell a stake to the public. Or they can do this (sell it or give it to shareholders) with the entire division. If shareholders don't like it, they can complain to the Board, and ask for a vote. Or they can vote in a different board. The Board & management make the decision as to what they deem in the best long term interests of the company.
Buying stock in SEG because of the software division doesn't make a lot of sense, unless what you want is a drive company which is diversified. That is, it makes sense if you want drive exposure, and then looking at the three drive companies, decide that Seagate Sotware tilts the decision in favor of SEG. Revenues of the software division amount to maybe 5% of the revenues of the entire company. If they end up buying all of Dragon Systems (they currently own 35%), that may well change 5 years down the road (almost certainly will change), but for the time being, the company is NOT primarily a software play. Not even close. |
