Please take it for what is worth I was in a conference for cloud-based storage and software in Israel There were a lot of software co representatives from different countries and companies Like MSFT APPL ORCL SAP CRM YHOO FB GOOL IBM NOK RIMM Motorola and many more. I have heard from many, after SAP and ORCL purchases of two cloud software companies It looks like IBM is eyeing CRM. According to one smart speaker” IT WILL BE AGREAT FIT” for IBM something that IBM is lacking and need it badly. Disclosure I am long 700 shares at 95.37 Merry Christmas to all of you and Happy Holiday
For its latest acquisitions, it appears IBM would prefer to buy companies at the beginning of their growth period, not at the end. CRM's latest qtr numbers proved growth is declining and costs are rising. It's moving from the growth phase to the maturity phase. This is when investors start to lose interest.
14 billion is a bit more than the 11.3 billion IBM has in cash on the books. If they are interested, they may drag their feet until it makes more sense...like a decrease in the price of CRM from its current level. The idea sounds like an IBM type move, but the price tag doesn't.