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Technology Stocks : PSFT - 1999: The "Make-It-or-Break-It" Year? -- Ignore unavailable to you. Want to Upgrade?

To: lebo who wrote (326)	3/27/1999 6:57:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 1274

Re: why IBM won't acquire PSFT IBM cannot acquire PSFT as a pooling of interests, which would have resulted in no accumulation of PSFT's massive goodwill on IBM's balance sheet. Since IBM must purchase PSFT outright, IBM would have to deal with $billions in goodwill which it would have to charge against earnings well into the future. Of course, if IBM really saw huge potential in PSFT that it couldn't develop on its own, or couldn't develop cheap enough, it might acquire the firm anyway. But IBM is an SAP partner as well, so an acquisition is anyway unlikely altogether. Mike