Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (7877)	10/3/2000 9:22:25 PM
From: Don Green	Respond to of 14451

Here is an interesting, but not a new perspective on the merits of SGI Silicon Graphics, Inc. URL: boards.fool.com Subject: Who would buy SGI ? Date: 10/2/00 8:32 PM Author: uglygujju Number: 661 of 663 Given SGI's hidden assets, reasonably good technology and floundering business, it is a ripe candidate for a takeover. I thought I would post my take on the likely companies that may go for it. Sun : Scott McNealy always said, during the days when SGI was actually a competitor to Sun, that the only reason Sun would ever acquire SGI would be for the buildings. Now that the market cap is pretty close to the price of the buildings, maybe he will go for it. :-) . From a business viewpoint, its not a great match for Sun. They have been reluctant to support more than 1 OS (Solaris) and this acquisition would land 3 more OS's (Irix, Linux, Windows) in their lap. There is some advantage of the 6000 odd staff since it is really hard to hire people nowadays. I dont really see this happening unless Sun realizes that Linux is the next big thing and they missed the bandwagon (well, they bought Cobalt but are thinking of making them run Solaris). IBM : They seem to believe in NUMA (bought Sequent) and SGI has the best implementation. Linux and Windows fits right into their platform strategy. Irix would be annoying but IBM wouldnt have a problem supporting it. 4 years ago, the cultures would have been markedly different but IBM has become less stuffy and SGI is not the maverick company it used to be. This is probably the best shot for SGI. HP : This also has a good chance. I am sure HP will appreciate the additional real estate and employees in Silicon Valley. SGI's server and software divisions would be a boon to HP. They would probably dump the processor divisions and spin off Alias Wavefront. The high end graphics may stay. This would be a good match for both companies but HP seems to be acquisition-shy. Intel : They seem to be making a series of stupid moves, so why not 1 more ? ;-) Seriously, SGI will have the best server design for the IA-64 series of processors and Intel may like to control that. VA Linux : It would give them more credibility with the stuffy IT types in the Fortune 500 type companies if they choose to push Linux there. Dell/Gateway : If they decide to fight Sun/HP/IBM in the high-end server markets, this would give them a big boost. Also an experienced and technically literate customer service and sales team.

To: Don Green who wrote (7877)	10/3/2000 11:06:27 PM
From: Thomas A Watson	Read Replies (1) \| Respond to of 14451

Don, I spotted this news and found it fascinating that this was a solicitation of 170 buck of my money to find out, to quote this news release. "Are workers at SILICON GRAPHICS productive? There is no absolute answer to this question." Again from this advertisement. Icon Group considers only those firms with sound financial situations or those not undergoing radical restructuring, or where random volatility, mergers, or bankruptcy affects performance. So I guess I can conclude from the fact that ICON group did a report that SGI did not undergo radical restructuring in the past several quarters. Tom Watson tosiwmee