Archive for September 16th, 2006

Rumor: HP to buy CA?

That would be a big one. But people say that HP today can’t fight IBM in mainframe territory. Almost every IBM mainframe account uses CA. So the acquisition can give HP access to most IBM accounts. Also CA’s stock is relatively cheap.

Add comment September 16th, 2006

Should Exxon Mobil buy General Motors or Ford?

Market Cap of Exxon Mobil: $404B; Market Cap of GM: $17B

They could buy them wothout blinking an eye. Think of the cell phone market, the phones are sold or leased by the carriers, not by the phone manufacturers. Sprint, Verizon, ATT sell us phones, not Qualcomm or Motorolla. Similarly Exxon could sell you cars and fuel at a monthly lease price.

The structure of the lease also would fit well: fixed number of miles and if you go above it there is some charge. Also concepts of roaming etc. fit well … and the economics should work given mostly people are local or withing state. Further with the availability of technologies like OnStar you can prevent theft etc.

Don’t know if it would trigger any anti-trust regulation. But it would surely change the auto-world as we know it.

Add comment September 16th, 2006


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