No, Microsoft IS NOT buying ATEA.
That sadly was a rumor that was started by mikenel324 on this board.
Here is his post.
On a purely "technolocial/business" basis Microsoft would not even consider a company like ATEA. To be an effective acquisition, Microsoft looks for a company with either a market leading position or unique cutting edge technology. ATEA has neither.
Unfortunately, Astea has probably less than 1% market share, so Microsoft would have to spend too many resources trying to unseat the market leaders like SAP, PSFT, SEBL, CRM and about two dozen other larger competitors. It's cheper to buy a leader.
Technologically, ATEA is a somewhat niche software geared toward a limited market (field service type stuff). So if MSFT was going to try to develop it for larger markets (which is the only thing MSFT looks at) it would cost far more to start with this "niche" product and try to adapt it to Microsofts broad application style. Cheaper to start from scratch.
Unfortunately for ATEA, as has been mentioned on this board before, most larger companies won't even consider software from such a small company because of integration problems with the MSFT, ORCL, etc software (which they have all standardized on). Also it is too risky for a company to buy software from such a small company because there is a real risk of the company failing totally in a few years and then the software buyer is stuck with obsolete software and no support.
p.s. I hope you didn't get sucked in by that rumor. Quite often "pump-and-dump" short term traders will try to start these rumors to get a short term pop and dump their shares on unsuspecting small investors. Some buyout rumors end up being true, but you have to look at how the "fit" would be. Unfortunately ATEA doesn't fit Microsoft's style.
Gotta love a guy that'll post such a silly msg and then respond to himself.
This is the most cut-and-dry short I've ever seen. The company is viable, but last quarter was an anomoly. They may have others in the future, but the chances of stringing two together will always be astronmical. This is a very old and relatively static market characterized by lumpy revenue. Always has been, always will be. Period.
They closed a nice deal. Congrats to them. The stock deserves a little bump from where it was, but they passed "a little bump" about $5 ago...
The rumor is that ATEA CEO has a cool pencil sharpener that Steve Balmer of Microsoft likes so he's looking to buy ATEA!
Buyout price is $4.50 and a #2 pencil per ATEA share!
Ha, ha, ha, ha, ha!
MSFT has a history of acquiring ERP vendors. has forked over significant sums of money.
ATEA looks cheap at these levels. A $60 million acquisition price sounds very reasonable. I wouldnt be surprised to see ATEA being acquired by ORCL or MSFT.