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Cloud Computing Journal - Corel May Get Sold
In Talks with An Unidentified Third Party Regarding A Potential Sale of the Company - No Agreement Has Been Made Yet

Corel may get sold.

It said late Wednesday night that it is in talks with an unidentified third party regarding a potential sale of the company, but that there’s no agreement yet or even the assurance of an agreement.

The statement followed a Reuters report that Corel had received “multiple preliminary offers from private equity firms and strategic buyers” late Wednesday afternoon.

The private equity firm that owns 69% of Corel, the Canadian company that shifts WordPerfect, withdrew its offer to buy the rest of the company for $11 a share so Corel can pursue other “alternatives for maximizing value for all of Corel’s shareholders” that a special Corel board committee turned up while evaluating the buyout proposal.

The $11 offer, made at the end of March, only represented a 3% premium at the time and valued the whole company at roughly $282 million.

Vector Capital, the company’s majority owner, took Corel private in 2003 for $120 million. It went public again in 2006 raising $104 million.

In July Corel reported a 60% drop in earnings to $930,000, four cents a share, on revenues up a little bit to $67 million.

About Maureen O'Gara
Maureen O'Gara is the Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

YOUR FEEDBACK
Bruce Arnold wrote: Kudos to the Cloud Crowd for Re-Inventing the Wheel! One thing 30 years in the IT industry has taught me is that the more things change, the more they stay the same. Another is that the only memory we seem to access is short-term. A third is that techno-marketeers rely on that, so they can put labels like "revolutionary" and "innovative" on platforms, products and services that are mere re-inventions of the wheel ... and often poor copies at that. A good example is all the latest buzz about "Cloud Computing" in general and "SaaS" (software as a service) in particular: http://tinyurl.com/6let8x Both terms are bogus. The only true cloud computing takes place in aircraft. What they're actually referring to by "the cloud" is a large-scale and often remotely and/or centrally managed hardware platform. We have had those since the dawn of automated IT. IBM calls them...
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