12.17.07
Rumour About Microsoft’s Role in Novell’s SEC Probe
We wouldn’t typically quote Maureen O’Gara for various reason including her hidden motives [1, 2, 3, 4, 5] which had her embargoed in places. The following article, however, contained bits that were too hard to ignore.
Novell hinted the SEC’s concerns might have had something to do with Novell’s admittedly complicated arrangement with Microsoft, which at the end of year one was said to have realized $122 million, 51% of their bogie.
If true, then Matt Asay’s assumption just might be slightly flawed.
There are some more articles in the press about Novell’s results. Most of them are pessimistic or as optimistic as possible given poor performance and ‘massaging’ of numbers. Articles include:
Novell stock dips after Q4 loss
Shares of open source software developer Novell plummeted after the company swung to a fourth-quarter loss, prompting at least one Wall Street analyst to suggest a buyback plan.
Analyst Actions: Citi, JetBlue, Take-Two, Novell
Analyst John Reilly Walsh says Novell’s (NOVL) fourth-quarter results were mostly in line with his estimates. However, he notes Novell stock fell about 8% in post-market trading on Thursday, likely due to disappointing fiscal 2008 [Oct.] guidance.
The Var Guy hasn’t much faith in Novell’s future. Watch this comment which was posted in response to his exclusion of Novell from a list:
Leaving Novell off a list like this is foolish. SuSE Linux is the preferred server for tens of thousands of businesses. You missed the mark, var guy.
Trolling or just patrolling? █
Highlight: Novell was the first to acknowledge that Microsoft FUD tactics had substance. Novell then used anti-Linux FUD to market itself. 
Highlight: Xandros let Microsoft make patent claims and brag about (paid-for) OOXML support. 
Highlight: Linspire's CEO not only fell into Microsoft arms, but he also assisted the company's attack on GNU/Linux. 
Highlight: Microsoft craves pseudo (proprietary) standards and gets its way using proxies and influence which it buys. 
Highlight: The invasion into the open source world is intended to leave Linux companies neglected, due to financial incentives from Microsoft. 
Analysis: Xen, an open source hypervisor, possibly fell victim to Microsoft's aggressive (and stealthy) acquisition-by-proxy strategy.