I bought BRCD yesterday. But you should realize that this acquisition is not cheap. I don't know Rhapsody, but from the release, all they are shipping now are few OEM systems, and the price tag seems quite high. The acquisition is made with stock, which is good and bad, it means dilution of 10%, but on the other hand, no hit on the cash side. Typically, after such a deal, there is an overhang of stock supply from those receiving the stock in the exchange, since it is only some 10% of the outstanding stock, it may have no negative impact. Look at what happened to VECO after their recent acquisition, not a pretty sight. But in this case, I think that the reaction may not be severe, since BRCD is already quite depressed relative to its peers. We will know soon enough.
Zeev
