through sewell's eyes

Sunday, October 14, 2007

Sybase, it's your turn.

So, a few days ago I saw Oracle's offer to buy BEA. One of my first thoughts was to Sybase. Sybase is really in a unique place. It one of the last few independent software companies left. With SAP, Oracle and a small degree Microsoft and HP, trying to buy the major mid-size enterprise companies, Sybase is going to find it squeezed out of fortune 500 companies unless it goes on an acquisition rampage to bulk up on its offerings in terms of breath and depth -- a good application server, applications(ERP, CRM). Another option is really to look for a buyer for the company. A 2.5B dollar market cap isn't that much for SAP or someone to spend on a company. The wireless/mobile stack would probably be worth spending that much.

Anyway, what prompted this posting is this press release from a hedge fund. While I agree that the directors need to do something, I question spinning off the mobile assets. If they do that, Sybase will be only left with a database that doesn't have great growth, IMHO. In either case, Sybase, it's your turn. Roll the dice.....

Disclosure : I own a little bit of Sybase stock acquired when I was an employee