Hey Hasso, Why Did You Wait Until Thursday to Say That???

Boy oh boy, talk about day late and a dollar short...

I spend the better part of the week focusing on all things SAP and then Hasso Plattner, the Chairman and major shareholder of SAP comes out with the biggest piece of news a day after we've all gone home from Sapphire.

This story is making the rounds, and it should because it's rare that you ever hear such open speculation. For the record, the following quote appeared in yesterday's Financial Times Deutscheland:

“There are only three potential buyers: IBM, Microsoft and Google. I don’t see anyone else. If shareholders think that a combination, and not independence, is better, then it will happen.”

A few quick thoughts...

1) Hasso isn't involved in active management anymore so keep that in mind
2) Microsoft and SAP have openly acknowledged prior merger talks, which ultimately fell through
3) IBM & SAP combining is a rumor that crops up about every six months like clockwork

But Google?!?! Seriously? The GYM folks are going to be in a tizzy over this. Maybe now SAP and some of the news from this week will stick on Tech.meme as the GYM-crazed "A-listers" talk about SAPOOGLE. :)

Note: At the time of this writing I, and/or funds I maintain discretionary control over, maintained long equity positions in MSFT & SAP but did not maintain a position, long or short, in GOOG or IBM.

SAP software sapphire06 m&a ibm google microsoft woodrow

Comments

[will]

ad supported enterprise software? SAPOOGLE?my god, the sky must be falling. . . it does make head hunters' job alot easier if its the case :)

[Dennis Howlett]

Yes but then consider this:
1. Hasso still has a big lump of SAP - and a degree of influence
2. A combination between SAP and Microsoft Business Solutions, sweeping up Sage along the way solves a lot of problems for all concerned.
3. Such a combination allows MSFT to create a business with enough critical mass to dominate all segments of the applications market with a management pool capable of delivering across VSB/SME/MSB and enterprise markets.
4. Such an entity can in turn be spun out with the potential for a triple homer. It allows MSFT to concentratre on its core business while making a few bucks along the way for its hard pressed shareholders while getting rid of an underperforming business unit that can be sorted out by enterprise apps professionals.