In an article released yesterday by Lisa DiCarlo of, following Interwoven's announcement of a 4:1 reverse stock split, both the viability and potential future directions of the company were explored. As noted in a previous CMSWire post, Interwoven and iManage merged earlier this month, a move that was general considered positive by industry analysts but one that also highlighted the fact that both companies are and have been struggling for quite some time. Lisa's article provides a thoughtful review of the new Interwoven's potential future and a bit about who might be stepping up to the M&A plate next. Here are some useful excerpts: o The split may make the company's shares--which have been trading under $3 since January--more attractive to institutional investors. o Through the first six months of this year, Interwoven's sales slid to $51.8 million from $65.7 million in the year-ago period. In the second quarter, average selling prices fell to $115,000 from $250,000. o Losses are narrowing - $16 million in the first half of 2003 versus $29 million in 2002--but they persist. o More troubling are long-term issues, not the least of which are larger software companies going after the document management opportunity. These include IBM, Oracle and Microsoft o "The bigger challenge is to expand their distribution into the marketplace," says Steven Sigmond of RBC Capital Markets. o runs on Interwoven o So here's a thought: If things don't pick up for Interwoven, maybe it should be acquired, perhaps by IBM as a play against rivals Microsoft and Oracle? --- ....hmm, this is not the first or the second time such a guess has been ventured. Read the full article.