Oracle to Acquire Sun for $7.4 Billion
The big industry news on Monday was the announcement that Oracle Corporation would acquire Sun Microsystems for approximately $7.4 billion. The acquisition would bring Sun controlled technologies such as Java, MySQL and Sun's workstations under the control of Oracle. The New York Times points out that Oracle sees Sun as a "software gem, skillful in computer design and ripe for cost-cutting."
The combined company, according to Oracle and Sun executives, will be able tweak and integrate its software to reduce costs and bugs, and to tighten security. Suns computer designers, they said, can tailor hardware to the combined companys software, promising further gains in efficiency.
Some are even calling the buyout an Apple-like maneuver with hopes to control the entire user-experience through tight software and hardware integration:Jobs showed that locking the software to the hardware and focusing relentlessly on building a perfectly integrated system aimed at the customer, was the superior approach. He gave consumers a first-class experience and got to command premium pricing, protecting Apple's margins along the way.
The move will put an end to long-running rumors and speculation that Sun may acquire Apple or vice-versa. Apple and Sun had reportedly been in talks over the years and come close to merging on two separate occasions.Top Rated Comments
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37 months ago
http://money.cnn.com/2009/04/20/technology/Oracle_Sun/?postversion=2009042008
:eek: wonder what this means for ZFS and Apple, if anything.
NEW YORK (CNNMoney.com) -- Business software maker Oracle Corp. said Monday it has entered into a definitive agreement to buy server builder Sun Microsystems in a deal worth $7.4 billion.
Oracle (ORCL, Fortune 500) said it will buy Sun (JAVA, Fortune 500) common stock for $9.50 per share in cash, a 42% premium from Friday's closing price of $6.69.
After accounting for Sun's cash and debt, the deal's value is $5.6 billion, the companies said.
The Redwood Shores, Calif.-based Oracle said it expects Sun to contribute over $1.5 billion to its operating profit this year, and over $2 billion in the second year.
On a per share basis, Oracle expects Sun "to be accretive" to its adjusted earnings by at least 15 cents in the first full year after closing. The deal is expected to close this summer, Oracle said.
The announcement comes after Sun reportedly rejected a $7 billion buyout offer from IBM (IBM, Fortune 500) earlier this month.
"The acquisition of Sun transforms the IT industry," said Oracle chief executive Larry Ellison, in a statement. "Our customers benefit as their systems integration costs go down while system performance, reliability and security go up."
Oracle said it sees "strategic customer advantages" to owning two of Sun's most popular software products: the programming language Java and the Solaris operating system.
"This is a fantastic day for Sun's customers, developers, partners and employees across the globe," said Jonathan Schwartz, Sun's chief executive. "Joining forces with the global leader in enterprise software to drive innovation and value across every aspect of the technology marketplace."
The deal is subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions. To top of page
:eek: wonder what this means for ZFS and Apple, if anything.
NEW YORK (CNNMoney.com) -- Business software maker Oracle Corp. said Monday it has entered into a definitive agreement to buy server builder Sun Microsystems in a deal worth $7.4 billion.
Oracle (ORCL, Fortune 500) said it will buy Sun (JAVA, Fortune 500) common stock for $9.50 per share in cash, a 42% premium from Friday's closing price of $6.69.
After accounting for Sun's cash and debt, the deal's value is $5.6 billion, the companies said.
The Redwood Shores, Calif.-based Oracle said it expects Sun to contribute over $1.5 billion to its operating profit this year, and over $2 billion in the second year.
On a per share basis, Oracle expects Sun "to be accretive" to its adjusted earnings by at least 15 cents in the first full year after closing. The deal is expected to close this summer, Oracle said.
The announcement comes after Sun reportedly rejected a $7 billion buyout offer from IBM (IBM, Fortune 500) earlier this month.
"The acquisition of Sun transforms the IT industry," said Oracle chief executive Larry Ellison, in a statement. "Our customers benefit as their systems integration costs go down while system performance, reliability and security go up."
Oracle said it sees "strategic customer advantages" to owning two of Sun's most popular software products: the programming language Java and the Solaris operating system.
"This is a fantastic day for Sun's customers, developers, partners and employees across the globe," said Jonathan Schwartz, Sun's chief executive. "Joining forces with the global leader in enterprise software to drive innovation and value across every aspect of the technology marketplace."
The deal is subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions. To top of page
37 months ago
Bad news for everybody.
Oracle has a nasty habit of picking the pieces of a company apart and then selling off the worthless carcass that remains.
Wow... The antitrust commission should just shoot this one down...
Oracle has a nasty habit of picking the pieces of a company apart and then selling off the worthless carcass that remains.
Wow... The antitrust commission should just shoot this one down...
37 months ago
Be interesting to see what happens to mysql , and Java for that matter.
very interesting.
37 months ago
I was pretty excited about the IBM deal. But if this deal with Oracle goes down it's pretty much the death of Sun.
37 months ago
I was pretty excited about the IBM deal. But if this deal with Oracle goes down it's pretty much the death of Sun.
You have it backwards.
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