TrendWatch Blog
divine's Financial Woes Continue
18-Feb-2003Unable to staunch continual financial hemorrhaging, divine is reportedly close to declaring Chapter 11 bankruptcy (perhaps even today). As a premier CMS package, we think divine's Content Server product could fetch a new owner (its fourth), but the dilemma for Content Server customers is that divine the company is too hopelessly complicated to just sell itself outright, and CS is the jewel in its crown. Of course, Chapter 11 is not liquidation, and divine has secured last-minute cash infusions before (though it would be tougher now). Recall that when divine itself bought CS from a failing OpenMarket, it waited all the way until the latter was about to miss a payroll to snap the company up at a bargain price. Do similar suitors await true desperation at divine? We're not sure CS customers should worry too much. divine under Chapter 11 protection could be a better CMS player, and the CS product is probably too strong to just evaporate. Worst case scenario: the codebase and support contracts fall to a decent-sized integrator...
Read a recent Chicago Sun-Times Article on divine
- Submitted by: Tony Byrne, Analyst
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