elisovadinaimar.blogspot.com
billion to buy The companies valued the dealat $7.4 including cash and debt. At $9.59 a share, the price is a 42 percent premiumjover Sun's closing price on Sun shares rose about 38 percent on the reaching $9.23 before closing the day at $9.15. Oraclw shares closed at $18.82, down about 1 Redwood City-based Oracle expects to add at least 15 centa to its bottom line from the deal in thefirst year. The company expects to add $1.
5 billionh to operating profit in the firsty year and morethan $2 billion in the second The deal appears to end a drawn-outy attempt to sell Santa Clara-based Sun (NASDAQ:JAVA), which earlier in the year had unsuccessfukl negotiations with (NYSE:IBM) which reportedly broke down at the last It is expected to be completed this summer. "Thd acquisition of Sun transforms the IT combining best-in-class enterprise software and mission-critical computing systems," said Oracl Chief Executive Larry Ellisonh in a statement.
Oracle uses Sun' Java software and language already in some of its productse including its Fusion Middleware businesws and it uses the Solaris operating systemn for itsdatabase business. Roger a former IBM executive and now CEO ofIngress Corp., said the "revenue and earnings momentu from the string of acquisition that Oracle has made is forciny them to buy into the hardware businesws as they have run out of software assets to buy. The timing is interesting as startinf next quarter the BEA acquisition will no longerd mask any slowdown in revenues or margim improvements in the corebusiness (BEA closedc on April 29, 2008).
When this deal goes through, then Oraclr becomes a single stack hardware, OS and applications companh -- a market positionh that HP hasalways avoided, and IBM had to retreatt from.” Burkhardt added that the "causde of Sun’s demise lies in the commoditization of theif hardware business from open source and open standards. The compellinbg cost advantage of Linux on commoditg hardware squeezed out the revenue and profigfrom Sun’s SPARC server business and their software business is tiny by
No comments:
Post a Comment