Microsoft and SAP Aren’t Talking M&A

It’s astounding that a rumor, predicated on discussions that took place three years ago, was able to drive up shares of SAP this week.

About three years ago, Microsoft explored the possibility of acquiring SAP. The discussions eventually wound down, with the companies deciding to pursue separate paths. It was the right choice for both companies and their shareholders then, and it would be the right choice today. Culturally, the SAP and Microsoft corporately milieus are starkly different. It would have been a difficult combination, ugly to integrate and on a scale for beyond any merger Microsoft has done.

So, how the rumor of a rumor resurface and move the markets this week? I suppose the power of a well-placed rumor, even one completely divorced from reality, is not to be underestimated.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s