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September 21st, 2009

Is Dell overpaying for Perot?

Posted by: Chris Kaufman

With something like $10 billion in cash, Dell wouldn't seem to be stretching itself to buy Perot Systems. But the $3.9 billion it is offering represents a 67 percent premium, so Dell shareholders should probably ask themselves whether Perot's business is worth so much.

Perot is a business service company with a big component dedicated to health information. It was founded in 1988 by Ross Perot -- the same Ross Perot who ran for U.S. president as an independent in 1992 and 1996.

Dell's cash pile is burning a hole in its pocket. It has said it wants to step up acquisitions, and services businesses are a logical target area, with higher margins and steadier revenue than the business of building and selling computers that made Michael Dell (pictured in shades above) the tech mogul he is today.

But why does Perot command such a hefty premium? "We think this acquisition is expensive," and even pricier than Hewlett-Packard's purchase of EDS last year, said analyst Shannon Cross of Cross Research. She says the cost-saving benefits are few. Even Dell says cross-selling benefits won't materialize until 2012.

"Dell investors should be outraged at paying such a large sum for such a small, vertical operation," said Douglas A. McIntyre of Wall St 24/7.

April 30th, 2009

On swine flu, Scribd calls itself the “anti-Twitter”

Posted by: Anupreeta Das

Use Twitter’s name even when you’re dissing it: that could be a good way to ensure some publicity, given the hype around everyone’s current sweetheart. But maybe Scribd, the social publishing startup that lets you upload all kinds of documents online and embed them into blog posts, does have a point about the misinformation that Twitterers could be putting up in 140-character bursts.

After all, at the Society of American Business Editors and Writers (SABEW) conference last week, CUNY J-school professor Sandeep Junnarkar did begin his workshop on Twitter for journalists with a caveat: “Everything you find on Twitter is rumors, false information. That’s the default position.” Kind of like what journalists and students are always told about Wikipedia.

A press release that landed in my inbox from Scribd seeks to distinguish the San Francisco-based startup as “anti-Twitter” — the antithesis of Twitter. Scribd is “quickly becoming a trusted source for unfiltered, detailed information about the swine flu,” the release says.

In support of that contention, Scribd says people can search for comprehensive information in real time from organizations like the WHO, CDC, American Red Cross, New York City Department of Health and Mental Hygiene, The White House and others. Statements, tips and other detailed documents are uploaded to the site every day. What’s more, 80 percent of swine flu-related documents on Scribd have been put up in the past three days, as more and more people become concerned about the spread of the disease.

To cater better to the widespread interest and concern, Scribd has put up a special section on its homepage dedicated to swine flu information from health agencies, including checklists, disease descriptions, public health fact sheets, handouts and other documents. (Check out the WHO swine flu update document here.)

Facebook recently released some trend charts that measure how many of its members are talking about the disease. Meanwhile, on Twitter, the messages continue to be as diverse as ever — an effortless mix of information, opinion and emotion.

One recent Tweet I found: “(Name removed) hopes he dies of swine flu so he won’t have to hear about swine flu anymore.”

January 14th, 2009

Apple, Jobs and health: A Reuters roundup

Posted by: Robert MacMillan

Apple Chief Executive Steve Jobs told the world Wednesday that he discovered that his health issues are more complex than he had previously thought, so he’s taking a medical leave of absence. Jobs, who earlier this month said his recent weight loss was caused by a hormonal imbalance that was relatively easy to treat, plans to be off until the end of June. Apple Chief Operating Officer Tim Cook will mind the shop in the interim. Once Apple shares resumed trading after-hours, investors knocked off about 10 percent of their value.

Here’s a quick roundup of what we found online about these latest developments (And of course, here’s the Reuters story before we get to the other ones):

Silicon Alley Insider:

Tim Cook should do fine as Apple’s interim day-to-day leader. He took control of the company last time Steve went on a leave of absence to treat his pancreatic cancer. Steve says he plans to “remain involved in major strategic decisions” while he is out.

Gizmodo (saying it was right all along for posting a rumor on its blog about this very subject in recent weeks, a blog that other reporters chopped into a million itty bitty pieces):

What’s interesting is that while we broke the rumor of Steve being sick a few weeks ago, and speculated that he was resigning months ago, peers at CNBC and All Things D and others were not convinced, because it was hinging on one particular source. Apparently, they believe the story now and are both moving quickly to report it. The letter above clearly notes that his health issues are more complex than previously thought, but his reasons for stepping down include the fact that stories about his health distract the company from doing its core work.

The Wall Street Journal (providing background):

Last week’s disclosure came on the eve of the Macworld trade show, which he had attended every year since 1997. Last month, Mr. Jobs said he wouldn’t give the keynote speech at the conference and Apple would no longer participate after this year. At the time, Apple said he wouldn’t appear because it was cutting down on trade show activities, but the decision spurred new speculation about Mr. Jobs’s health.

Bloomberg (providing way-back background on why Jobs and Apple are intertwined from many investors’ points of view):

Jobs, who co-founded Apple in 1976, returned as CEO in 1997 and transformed the money-losing maker of Macintosh computers. His focus on stylish design and simple-to-use gadgets won over millions of buyers, turning Apple’s iPod media player and iPhone into best sellers. Jobs, who had successful surgery for pancreatic cancer in 2004, appeared thinner at Apple events last year.

And finally, a Paul Chapel commenting on the Engadget blog about Jobs’s importance to the world:

Get well, Steve, and thank you for the MacBook Pro I got over Christmas. That thing has helped me meet more girls at Starbucks than what would have been possible otherwise. Look forward to seeing what you have prepared for us in June.