Re: Quark buyout of Adobe - get serious, guys!

[John Posada <john -at- TDANDW -dot- COM>]

Alex...buyouts are funny.

First, bigger doesn't always win and smaller can buy bigger. It's not
the size of the company, it's the size of the financing and if I can
arrange more financing to buy then you can to keep, then you're mine.

Second, market cap isn't the detirmining feature. Let's say Adobe has 67
million outstanding shares. Quark could purchase those shares on the
open market, and also approach the largest shareholders and make an
offer to buy the shares from them at a higher than market price.  All
they need to do is buy, own or control the voting rights of the majority
of the shares, and they own the company. This is a hostile takeover.

Of course, they then start selling what they would believe are not
valuable pieces to pay for that financing. Therefore, with Quark's
product, Pagemaker would probably be the first to go.

OTOH, and what they are first doing now, is to try a friendly takeover.
If you go to the quark site, go to Press Release page
(http://www.quark.com/about/pr001.html), you will see the letter that
Quark sent Adobe notifying them of their intent.



Alex Ragen wrote:
>
> Guys--
> Adobe's market cap is $1.7 billion and it has 4 times the
> sales of Quark. Quark is in no position to raise the cash
> needed to take over Adobe, so they've childishly taken the
> opportunity to publicly humiliate Adobe while it's going
> through hard times.
> I don't think a panic is in order.
> --Alex
> ============================================
> Alex Ragen - Technical Publications Manager
>    Check Point Software Technologies, Ltd.
> alex -at- checkpoint -dot- com http://www.checkpoint.com
> =============================================
--
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