Brocade on the block?
The Wall Street Journal reports that the data storage equipment maker wants to sell itself. While Oracle and Hewlett-Packard are potential bidders, a deal is not imminent and Brocade might not even go ahead with a sale, according to the report.
Just a couple weeks ago, Brocade said it expected to turn the corner in 2010, with revenue exceeding Wall Street expectations. Better late than never. It reported a loss for the third quarter and a decline in revenue from the second quarter, and saw its stock punished by traders who had been expecting a turnaround sooner.
Brocade also said in September that its integration of Foundry Networks, acquired last year, was going as planned, and its sales partnership with IBM was beginning to yield more benefit. Just the kind of thing you’d want to hear if you were a Brocade shareholder contemplating a sale. Tech services mergers have been very hot of late, and the potential buyers — particularly Oracle — are not exactly poor or deal-wary.