In the meantime, BEA is persistently the subject of takeover rumors, due to its rich assortment of more than 12,000 customers. In mid-2002, rumors of its takeover by Hewlett-Packard were posted to the O'Reilly Network (www.oreillynet.com). On Dec.15, research from Banc of America Securities predicted BEA Systems stock would rise from $12 to $13.50 in 2004 because of its attractiveness as a takeover target. Its appeal is its large base of enterprise customers, the report said, naming Oracle as a possible buyer if it proves unable to acquire PeopleSoft.
The latest industry observer to speculate is Yankee Group analyst Dana Gardner, who thinks the most logical buyer is Microsoft. He says both Microsoft and BEA Systems have weaknesses as software companies that could be countered if Microsoft acquired BEA.
In a research note issued Dec. 30, Gardner wrote that the combined companies would gain "powerful synergies, give the marketplace more choices for IT software and blunt the competitive threat facing Microsoft," primarily from IBM, Sun Microsystems and Hewlett-Packard.
Gardner wrote that Microsoft needs to stop trying to convince the world that it must become Windows-only. It can reach out to the world of Java developers and other systems by acquiring BEA Systems' WebLogic Application Server, Workshop development tools and portal and integration software.