The Five Dumbest Things on Wall Street This Week
5. Kitchen Sync
The folks at Intellisync (SYNC) know a good deal when they see it.
The San Jose, Calif., Blackberry wannabe agreed Wednesday to be acquired by wireless titan Nokia (NOK) for $5.25 a share. The deal, which Intellisync valued at $430 million, "underscores Intellisync's position in the mobile industry and its leadership in the carrier and enterprise markets in providing multi-device, multi-platform wireless software, mobile applications and synchronization," the company said.
"This agreement recognizes the key roles that Intellisync and our people play in the mobile market, and reflects the power of our brand, our products, our team and our technology," CEO Woody Hobbs added. "Our combined teams will present the most compelling mobility offering to enterprises and carriers all over the world."Sounds great. Investors in rival Research In Motion (RIMM) certainly took note, sending the patent-plagued Blackberry maker down 4%. Yet Intellisync shareholders didn't seem to share Hobbs' enthusiasm. Intellisync didn't immediately return a call seeking comment, but reader John von Colditz thinks the price tag -- which has Nokia paying 5% less than Tuesday's closing price -- might bear some of the blame. "The first time I've seen a deal for less than the closing price!" he notes in an email. "Management has reduced shareholder value!" Yes, but what a small price to pay to underscore Intellisync's leadership. Dumb-o-Meter score: 75. "'Powered by Intellisync' has become synonymous with 'any device, any platform, any mobile application,'" the company claims in its press release -- overlooking the inconvenient fact that no one gives a hoot.
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