Lotus, hard-pressed by Microsoft Corp., to buy word-processing software firm
Article Abstract:
Lotus Development Corp acquires Samna Corp for $65 million in an effort to compete with Microsoft Corp in the word-processing software market. Analysts see the move as strategically sound but wonder if the price was too high. Lotus, which receives two-thirds of its profit from its Lotus 1-2-3 spreadsheet software, struggles to compete with Microsoft, a software company that offers a wider range of products. Samna's Ami word-processing software is one of the first products to become compatible with the Microsoft Windows 3.0 graphical user interface, but its market share is only around 2.5 percent. Analysts who believe that Lotus paid too much point out that Samna had a net loss of $1.2 million, or 46 cents a share, on $10.3 million in sales for the nine months ending Sep 30, 1990.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Lotus and Novell extend discussions on planned merger
Article Abstract:
The proposed merger of Lotus Development Corp and Novell Inc may have hit a snag over the role top Novell management will play in the new company. The two companies have extended until May 18, 1990, a letter of intent under which the terms of the merger are being negotiated. Analysts say the main stumbling block is the future position of Novell's chairman Ray Noorda. Initially Noorda was to assume the title of vice president of the new firm, but many believe he will become co-CEO under the final agreement. Novell share holders place a good deal of importance on Noorda's placement because they fear that without strong representation at the top of the new firm, Novell may be swallowed by Lotus.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Lotus to acquire Novell for $1.5 billion; possible challenge to Microsoft seen
Article Abstract:
Lotus Development Corp agrees to acquire Novell Inc, of Provo, UT, for $1.5 billion in stock. This action solves Lotus's biggest problem - dependence on 1-2-3, the spreadsheet, as its only major product. Novell has more than half the market for network software. Analysts think that if Lotus and Novell blend strengths and offset weaknesses, they could emerge as a counterweight to the industry dominance of Microsoft Corp. According to Aaron Goldberg, a market researcher at International Data Corp, this merger 'rearranges the power structure in the software industry.'
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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