Corel Corp. and Inprise/Borland have called off plans to merge. Corel earlier this year acquired several Mac applications from MetaCreations and had also said that, if the Borland merger were to fall through, it would run out of cash in 90 days.
Corel declined to elaborate on their current cash position, but, now that the merger has actually been called off, the company is changing its story, saying that it now has the opportunity to seek new sources of financing and implement a cost-saving plan. "I'd like to emphasize that Corel does have cash in the bank," said John Blaine, CFO of Corel. The company declined to elaborate on its cash position. It also wouldn't detail it cost-savings plan, saying that it was just in the planning stages. The company did say it expected the plan to save Corel $40 million on an annualized basis.
Corel says it has several financing offers on the table and is currently evaluating them. The company says it expects to decide on which financing option it will take soon. The company says it will continue to focus on Linux and "Web-enabling" applications. We tried to contact Corel about the future of the MetaCreations applications, but the company had not returned a phone call at press time. We'll update this story as information becomes available.