Oracle Buys Sun

bruunb writes "Oracle Corporation (NASDAQ: ORCL) and Sun Microsystems (NASDAQ: JAVA) announced today they have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun's cash and debt. 'We expect this acquisition to be accretive to Oracle's earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. We estimate that the acquired business will contribute over $1.5 billion to Oracle's non-GAAP operating profit in the first year, increasing to over $2 billion in the second year. This would make the Sun acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined,' said Oracle President Safra Catz."

Comments

Re:Postgres is looking better than ever

[gmack]

Does it have replication yet?

Re:Wow

[slashdot_commentator]

You think your opinion really means anything, Coward Troll?

Sun's Declining Business == Trolling? Ha.

[segedunum]

I find it very funny that certain people think it's trolling to point out the seriousness of Sun's predicament that has been brewing for the past ten years. The truth hurts some people quit a bit I suppose, and I've seen it a lot. I think when you reply to something like that then you need to ask yourself why Sun needed to get bought in the first place out if everything is as rosy as you paint it.

Don't give a flying fig about Suns servers?

People have been giving less of a damn about SPARC for years, especially when the performance is better on x86 and they have the open source 'Unix' in Linux on x86 that Sun refused to give anyone. You have to have been living under a rock not to have seen how much Sun's workstation business got eaten overnight and how many of their SPARC server sales have overlapped too much with the workloads that have long since been taken over by x86 and Linux systems.

Quoting IDC's figures doesn't lend you much credibility. They skew their view by ooking at the market based on revenue, and there is an awful lot more that IBM and even HP makes off the back of their server sales that doesn't show up there, hence the grandparent talking about additional software services. Additionally, the lion's share Sun's revenue is off the back of a declining, once lucrative SPARC market that they relied on and their x86 sales are nowhere near to recouping what they're losing in revenue and in maintaining SPARC, and to a slightly lesser extent Solaris. Indeed, Sun have been selling their x86 servers quite cheaply in order to keep people interested and the sales figures up.

Sun have a decent customer base that any company would be interested in acquiring, and why IBM was interested but wasn't willing to do just anything for. They have no power whatsoever to harm IBM though otherwise IBM would have kept at the deal. The end game is the same no matter how much wishful thinking, IDC stats and takeovers you throw at it and IBM knew the price for that.