This is Why Jive Software WON'T GO PUBLIC

Jive Software was supposed to bring us a rockin’ IPO. The social media platform for the B2B space was generating plenty of excitement, and it was going to make a lot of people very, very wealthy.

Well, it doesn’t look like that’s going to happen.

rumour has it that SAP is close to acquiring Jive Software, according to CIO UK, and that that the announcement could be coming in the next few weeks.

Jive Software was said to be pursuing a $1 bn valuation, roughly equivalent to its market size. It has solid venture capital backing and a nice roster of blue-chip clients. And this is probably what makes the company attractive to SAP.

Constellation Research analyst Ray Wang tells CIO UK: ‘SAP may have to make an acquisition to make social work. We think something might be happening in the next few weeks, but we’ll see.’

Here’s the circumstantial evidence:

1. Tony Zingale, CEO of Jive Software ‘has canceled all meetings and appointments during the last three weeks.’ He isn’t speaking at events and is avoiding customer activity.

2. The management team at Jive was brought in to affect a liquidity event – which doesn’t just mean an IPO.

3. SAP is missing the social component. Wang cites ‘five changes driving the consumerization of IT’; the other four are mobile, social, analytics and unified communications. SAP is making good progress on mobile and analytics. It is already a strong player in cloud computing. Acquiring Jive is an accelerator in the social component.

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Source: CIO UK

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