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.


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