Per sources on twitter, Oracle in late stage talks to acquire NTNX for $65/share. Unsubstantiated at this point, but wanted to share.
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Per sources on twitter, Oracle in late stage talks to acquire NTNX for $65/share. Unsubstantiated at this point, but wanted to share.
I don’t believe that NTNX would sell at $65…way too low.
Chris
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Too cheap. EOM. But who knows. Need a larger premium unless there are things not going so right with Nutanix that we are not privy.
Tinker
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Large move on heavy volume today. Lets see how this closes.
The other thing that happened today, was an invite-only conference call for Xi Leap at 11 est, which coincided with the large move. They were supposed to discuss the GA of Xi disaster recovery, so I’m wondering if this had any impact as well.
Regardless if there is a buyout or an extended march upwards, long NTNX until the story changes.
Stephen
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At such an early stage, with its product roadmap and vision I would be surprised if it sold out. If anyone tried I would expect a larger premium and expect it to be a competitive bidding war.
A
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Very interesting. Oracle is hurting, though I am biased, having worked there 18 months ago and still surprised they canned the entire SPARC processor division I was in. They see IBM buy Red Hat, I can easily see them at least looking at a large acquisition to “join in”. I have to wonder though if NTNX is the thing. Oracle is all about locking people in, and NTNX seems to be about giving customers the ability to move about. I’m either missing something, or this is not a fit.
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Wasn’t there just a thread where NTNX CEO had a large stock option that vested at $80.
Slim chance they get bought for less than that.
Darth
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Too cheap. EOM. But who knows. Need a larger premium unless there are things not going so right with Nutanix that we are not privy.
Who knows? $65 is a 50% premium from the current price this morning. And that was up 25% from the low a week or two ago.
Saul
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they canned the entire SPARC processor division I was in
Clearly they are moving away from SPARC but not from all hardware. Currently Oracle’s Cloud @ Customer offering is facing enormous challenge. That offering is supposed to be the gateway for Hybrid cloud. NTNX addresses that gap.
They see IBM buy Red Hat
Don’t just view it from Oracle’s point of view, look at it from NTNX point of view. It makes sense for them to be part of Oracle to deal with competition.
Oracle is all about locking people in, and NTNX seems to be about giving customers the ability to move about.
Unfortunately the recent moves by Oracle has created this impression. For a long time Oracle was agnostic to the hardware platform. They didn’t lock you in to any specific platform. You can easily move their database, middleware and applications from one platform to another. So oracle is about lock-in is not entirely correct way to look at things.
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One interesting connection point, Pandey used to work at Oracle for 4 years before Nutanix. Not sure if that is good or bad…but they are familiar with eachother.
If rumors are true (granted a big if), this should be a medium-term win-win for investors. Either a short-term 50%+ gain. Or if NTNX turns down the offer, we can rest assured that they are expecting the next few quarters to be very strong.
Long-term, being sold at $65 would be disappointing to me. I’m anticipating they can grow to multiples of that price in next 3-5 years. But with other stocks down right now, would be fun to reallocate the capital!
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Who knows? $65 is a 50% premium from the current price this morning. And that was up 25% from the low a week or two ago.
While I would take the money and invest in something else, it would be a shame to see Oracle buy Nutanix at $65 a share. Based on what I am seeing, I truly believe there is a long runway for the company.
Of course, since I could be wrong, I would take another 50% from here.
A.J.
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