First, the media reports:
- DOW Jones suggests that VMware will bid for Novell's SUSE Linux Business.
- The New York Post suggests Novell has reached a two-part sale deal that will be announced in three to four weeks.
- Novell shares jumped 6 percent today based on the rumors.
- Merger rumors involving Novell and VMware have been circulating since early July 2010.
- In August 2010, Novell reported lower-than-expected quarterly results. Novell blamed some of the weak performance on the company's uncertain ownership status.
Novell has been the subject of M&A rumors since the 1990s. But this time, the rumors "feel" right to The VAR Guy. Multiple reports say Novell solicited bidders for the company in recent months. And the Novell-VMware combo sure sounds intriguing, especially since VMware has acquired multiple open source companies to attack Microsoft's Windows and Exchange Server franchises. Novell SUSE Linux could further that VMware effort.
But who would acquire Novell's other businesses -- particularly the company's identity and security management offerings, and new options like the Novell Cloud Security Service? Hmmm... CA Technologies has a history of buying systems management and security firms. But in reality, The VAR Guy doesn't know if Novell will ultimately get purchased... and who will potentially do the buying.
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