IBM Buyout of NetApp? Pure Speculation
Is IBM (NYSE: IBM) looking to buy NetApp (NASDAQ: NTAP)?
February 4, 2013
rumors
Is IBM (NYSE: IBM) looking to buy NetApp (NASDAQ: NTAP)? There are no reports of actual buyout talks, but a speculative story from Bloomberg has got Wall Street talking. The thesis: IBM will need to make big acquisitions to ignite growth. But the last time The VAR Guy checked: NetApp was not in fast-growth mode, and Bloomberg’s report about a possible IBM-NetApp business combination was pure speculation rather than fact-based insights. Here’s the background.In its Q4 2012, IBM’s earnings rose but revenues were essentially flat. Meanwhile, NetApp’s Q2 2013 results (announced Nov. 14, 2012) revealed falling net income and flat revenues. NetApp’s next earnings report is due Feb. 13, 2013, after U.S. markets close.
In the meantime, Bloomberg has a speculative story that basically asks Wall Street watchers which companies could be on IBM’s M&A target list. Shaw Wu, a widely quoted analyst from Sterne Agee, said speculation about IBM potentially buying NetApp has been around for years. But Wu never suggested IBM was in discussions to buy NetApp. Wu also speculated that companies like Juniper Networks and Akamai could also be on IBM’s target list.
Yada, yada, yada: There’s no hard news here other than the following: Bloomberg generated a speculative story and now the possible IBM-NetApp hookup is going viral. CRN ’s resulting headline: IBM looks to acquire NetApp. Really? According to whom?
Sure, it could happen. But let’s all draw a clear line between industry speculation vs. sources who are aware of (A) IBM’s actual M&A plans or (B) actual takeover discussions.
Still, a potential IBM-NetApp combination could trigger a domino effect across the IT landscape. Cisco Systems has been working more and more closely with NetApp. And, NetApp has been working with Amazon and other cloud companies to help customers burst their on-premises private cloud storage up to public clouds.
Intriguing times… But no real M&A discussions… At least not so far…
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