Netscape Selling Shares of RedHat?Monday June 12th, 2000Netscape selling 500,000 shares of RedHat? What does it all mean? Yes, I know I got it wrong...
Isn't this saying that Netscape/AOL is selling 500,000 of their REDHAT stock? Or am I just confused? Given the large amount of income AOL brings in, I find it hard to believe that an extra 10 million would make a huge difference in much of anything. Plus the fact that this can't help relations between Red Hat and Netscape. I just think it's a bad idea all around. Companies sell stock all the time - usually *not* because they don't like the company. What's the big deal? They probably just restructured their pension plan or something. This sort of things happens every day. You'll see that they only made an SEC filing that would give them permission to sell. It's a warning that a large block of stock MAY come on to the market. If they actually sell it, there'll be another filing. So far, they haven't sold a thing. It could be anything from wanting to have more liquidity for a loan requirement (no one pays for anything with their own money), to a possible distribution scheme to employees, to outright selling. We don't know, and I'm sure Redhat barely took an interest. They may already have known. |