Oracle's Acquisition of Sun Microsystems

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Case Details:

Case Code : BSTR336
Case Length : 18 Pages
Period : 2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Oracle Corporation, Sun Microsystems
Industry : Information Technology and Related Services
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"The transaction stands to utterly transform the marketplace - bringing together two companies with a long history of working together to create a newly unified vision of the future."¹

- Jonathan Schwartz, CEO, Sun Microsystems, in April 2009.

"It moves Oracle more into the competition with HP and IBM and Microsoft. It makes them a player in the space. It gets hardware, which should be interesting to see since Oracle doesn't make things. It's going to give them access to customers who weren't using the Oracle database."²

- Shannon Cross Principal, Cross Research³, in April 2009.

Introduction

On April 20, 2009, Oracle Corporation (Oracle) announced that it had entered into a definitive agreement with Sun Microsystems (Sun) under which it would acquire Sun at a valuation of US$ 7.4 billion. Oracle expected the deal to be closed by the end of September 2009 subject to regulatory approval.

The announcement came as a surprise to industry observers who had not even considered Oracle as a probable contender for the acquisition of Sun. Steve Ballmer, CEO of Microsoft Corp,⁴ reacting to the deal, said, "I just learnt it. I need to think about it. I am very surprised."⁵

Oracle's Acquisition of Sun Microsystems - Next Page>>

1] Mark Sutton, "Oracle Buys Sun for $ 7.4 billion," www.itp.net, April 20, 2009.
2] Jim Finkle, "Oracle to Buy Sun Micro, Enters Hardware Market," www.cnbc.com, April 20, 2009.
3] Founded in 2003, Cross research is an equity research firm with focus on technology industry.
4] Microsoft Corporation is a US-based computer technology corporation, founded in 1975 and head-quartered in Redmond, Washington, US.
5] "Microsoft CEO 'very surprised' by Oracle-Sun Deal," www.reuters.com, April 20, 2009.

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