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  1. #21  
    -An IPO is not as simple as simply saying "Let's go public". Look, I am not saying our organization was perfect. We had our issues from an operational standpoint. Hypergrowth has many drawbacks as well. Also, a 'few hundred million' would not have been the financing we would have needed to move the product and the company to where we wanted it to be.

    -Motorola has 100's and 100's of software engineers with a vast amount of experience. From a developers standpoint, there is no difference in enterprise software and non-enterprise software. Code is code, be it java, Linux, whatever.

    -I respectfully disagree with your point about consumer hardware costs not being a factor. How many sidekicks have been sold? Chattermail is $39.95 but the device to run Chatter on is the most expensive device at the phone store. As much as I disagree with their entire business model. RIMM did not get to where they are today by being a stupid company. Their feet-first jump into the consumer space starts with a cheap device. Carriers subsidizing Blackberry devices and the offering of BIS as an option has soccer moms all over the country spinning scrollwheels, more than willing to pay a premium for that capability.

    You also are assuming the model under which Good runs right now will remain the same with the Motorola change. I have no insight one way or the other, but again, MOT is not a stupid company either. Their growth since Ed Zander arrived is nothing short of amazing. I don't see them investing what they did in good (you will hear the price when the deal closes) was not done on a lark or whim. You also are focusing too much on the consumer side of things. Motorola did not purchase Good for our expertise in the consumer space to be sure. Our abilities in the enterprise, our suite of products, not just email, and our experience in building a base of customers in the enterprise from basically nothing to the acknowledged leader in enterprise wireless communications in a fairly short amount of time. Motorola and Nokia are the leaders in the hardware space for consumers. The ability to port our product over to a consumer offering, I am sure, had some bearing on Motorola's decision, but my guess would be the ability to take an established product and brand in the enterprise and make it bigger and better had a much bigger impact on their decision.

    The effect on our other hardware partners remain to be seen. I have heard (via our execs on a conference call) some early responses from some of the hardware and carrier partners. First off, Nokia really can't say anything since their acquistion of Intellisync put them in the exact same boat. That being said, my feeling is that Palm knows what Good does for their devices, as does HTC and others. I think (this is strictly me talking) they will continue to work with us, however, they may not be as forthcoming on their product roadmap as they once were. Even so, as Motorola, we will see the carrier device roadmap, so I don't think we will miss that much.

    Your skepticism is completely understandable. Anytime an company takes a chance, going into a sector where they don't have any previous experience, there is going to be skepticism, especially when that company acquires another company that has established themselves in that space. Look, as a Good (soon to be Motorola) employee, I can tell you that I have my concerns as well. However, I truly do think that this was the best thing for Good and a brilliant move on Motorola's part.
  2. #22  
    Good, a few counterpoints:

    - If a few hundred million dollars is not enough for an established software company with 12,000 customers to move to the next level, the issues at Good are more serious than I thought.

    - Code is code, Java, C++? Are you sure? Linux is an OS, not a programming language, btw.

    - I didn't say that hardware cost is not an issue...I said it was not the only issue. And you should known this as well as I do that BIS is not push email. It just appears to be push, but it is actually pull. The jury is still out on Pearl. Let's see how it competes against the Treo head on when the 680 and the Pearl are both released on Cingular.

    - Motorola is not stupid, but it certainloy isn't perfect either. No company is. Ever heard of a company called Iridium?

    My point is that very few companies put themselves up for sale when they are hitting on all cylinders. I have no first-hand knowledge how things are going at Good. But this sale to Motorola seems to indicate that things are not as rosy as your management has stated in the past.

    I hope all the best for you and Good, but it is a strategic mistake for a software company with industry standard ambition to sell itself to a hardware company. Having said that, if I were a Good investor, I would welcome the sale to Motorola with open arms.
  3. #23  
    Rome..

    We obviously are going to have to agree to disagree here. Definition of a few hundred million can be $200 or $900, and there is a significant difference there. As I said, an IPO would have generated capital, but the question of when it would have been viable to IPO is the key. If we announced Jan of 07 were were going to IPO, we would probably be looking at 8-9 months, at best, before that IPO would take effect and that is not even taking market considerations in mind. In this space, that is a LONG time. Sure, we could have gone out and gotten some bridge financing, but that would diluted the per share price. The time was right and, apparently, so was the offer.

    When I say code is code, I was refering to code to develop enterprise apps is the same as the code to develop consumer apps, not that Java and C++ and other languages were the same. My fault on that. As for Linux, I know it is an OS. I was referring to developing on the Linux platform.

    Regarding BIS, true it is pull, but so is MS ActiveSync. Agreed on the jury being out on the Pearl. I have seen the 680 and will take it over a Pearl all day long then again, I am bit biased.

    I have heard of Iridium. Have you heard of Windows ME or BOB? One mistake does not a bad company make.

    Agreed, few companies put themselves up, however, when the time and offer is right (as I assume it was), then board has a responsibilty to the share holders (of which I am one) to take that offer under consideration. Obviously, I have absolutely zero insight into the decison process nor do I have insight into the books and back office operations of Good.

    Good is only barely 6 years old as a company and only about 4 years old as strictly a software company. Still in start-up mode. We started out as a hardware company with the Handspring MP3 player and then the G100 device, so we are bringing some hardware experience as well. RIMM had been around 13 years before their IPO.

    As a share holder and an insider, I think that mix of Motorola's hardware expertise and distribution channels combined with Good's software and customer base is a great match. Could I be wrong? Sure I could, but I truly feel, based on my over 15 years in the IT space, that this one will work.
  4. #24  
    Backing up GOOD here for a sec on the IPO front:

    Just speaking generally, an IPO can be risky. It could go really well or it could flop. They could see sky high prices and then drop. Basically if they aren't confident the market would take to a software-only version of RIM, then they made the right choice. They probably employee at least a few investment advisors to make that decision for them, and I am sure those people have looked closely at the market trends and determined the best course of action.
  5. #25  
    Agree to disagree indeed. Only time will tell.

    Best of luck to you and Good.
  6. #26  
    Quote Originally Posted by questionfear View Post
    Just speaking generally, an IPO can be risky. It could go really well or it could flop. They could see sky high prices and then drop.

    What do you mean by this?
  7. #27  
    Quote Originally Posted by Rome View Post
    Agree to disagree indeed. Only time will tell.

    Best of luck to you and Good.
    Thanks!
  8. wawa's Avatar
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    #28  
    i heard somewhere that GOOD was started by a few developers that used to work for RIM. is this true?

    and that RIM gets some sort of royalties for each device that has GOOD on it?

    a friend of mine told me this and i was just wondering if it was true.

    thanks
  9. #29  
    Quote Originally Posted by wawa View Post
    i heard somewhere that GOOD was started by a few developers that used to work for RIM. is this true?

    and that RIM gets some sort of royalties for each device that has GOOD on it?

    a friend of mine told me this and i was just wondering if it was true.

    thanks
    Good was not started by ex-RIM employees.

    Good and RIM reached a settlement as it related to a lawsuit brought by RIM against Good over 2 years ago. There was a royalty agreement reached, however, it is my understanding that this had to do with Mobitex devices, which Good has not sold for the last two years. I don't know the details.
  10. #30  
    Quote Originally Posted by Rome View Post
    What do you mean by this?
    I am sorry, I was terribly unclear.
    An IPO raises capital for the company. If the IPO does not result in high prices, then less capital is raised. Also, you become beholden to the investing public, rather than yourselves. And your company's "dirty laundry" so to speak, is public knowledge and can effect the public value of your company.
    In the case of Good, they might have been concerned that the market might not take to a software-only version of RIM, in which case their shares might not have been as high as they wanted to raise the capital, or their shares would have dropped low enough that Moto or another company could buy them out for signicantly less and possibly create an unequal merger. By remaining private and negotiating as such, Good might have ended up with a better deal.
    I don't know for sure, I certainly don't know anything substantive about either company. I am just saying an IPO is not always the best decision, and I am sure Good employed at least a few investment bankers to help determine that. I did a really terrible jobof conveying the IPO explanation earlier. I hope that makes more sense.
    Last edited by questionfear; 11/13/2006 at 04:59 PM. Reason: Employed is not spelled employeed. Or employedd.
  11. jeepik's Avatar
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    #31  
    man, i am sceptical too, as we have one of the largest and oldest accounts with good. I dont need to re-evaluate our mesaging platform now, as we just mapped out till 2008

    Hey Good, tell them to hold off on making any drastic changes until 2008, we like where good is right now
  12. #32  
    Quote Originally Posted by jeepik View Post
    man, i am sceptical too, as we have one of the largest and oldest accounts with good. I dont need to re-evaluate our mesaging platform now, as we just mapped out till 2008

    Hey Good, tell them to hold off on making any drastic changes until 2008, we like where good is right now
    Jeepik and other Good Customers...

    I completely understand your concerns. I, too, would be concerned. However, Motorola has no intention of changing the multi-platform, multi-device support that GMM provides. If you look at our install base, it is mult-platform. Part of the attraction Good provided to Motorola is our install base of over 12,000 companies. Motorola wants to become a major player in the enterprise space, similar to how they are in the consumer space. To cease development on multiple devices would completely remove one of what I think is one of the key factors in the acquisition. Granted, some of the hardware manufacturers may not be as open with their product roadmap as they once were when Good was a standalone entity, the fact remains that GMM is the #1 industry standards based wireless messaging product and Motorola has to know that. Truth be told, I think the acquisition will benefit our customer base more than harm it in that we now will have much greater resources to develop and improve the product.

    Down here in the South we have a saying: Dance with who brung ya. We know who brung us.
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