Oracle to buy Sun Microsystems for $7.4 billion at $9.50 per share

Oracle said Monday [20 Apr 2009] it has entered into a definitive agreement to buy Sun Microsystems in a deal worth $7.4 billion. Oracle said it will buy Sun Microsystems common stock for $9.50 per share in cash, a 42% premium from Friday's closing price of $6.69.

The deal with Oracle came about 2 weeks after IBM ended its talks with Sun. The Sun board balked after IBM lowered its offer to $9.40 a share from $10. A Oracle-Sun deal disrupts the traditional relationships formed between some of the technology industry's largest players. "The acquisition of Sun transforms the IT industry," said Oracle CEO Larry Ellison, in a statement. "Our customers benefit as their systems integration costs go down while system performance, reliability and security go up."

First thoughts :

1. How many jobs are going to be lost over at Sun? Just received this tweet earlier from Chris Yeo : "Wow, Sun Microsystems has laid off quite a number of people in its Singapore office. Sounds bad."

2. Oracle now owns Java. Now what for Java?

3. Oracle now has both Oracle Database and the MySQL database. Now what?

4. Ditto for Weblogic and Glassfish.

5. Ditto for their portal, SOA, ESB and other products.

6. So, what happens to Jonathan Schwartz?

7. Sun sold out for a difference of 10 cents per share. Well I don't know the background story yet, but perhaps it made a big difference to them.

8. Yup, the IT industry and landscape has just been transformed. Big time.

9. So as a customer, should I look forward to bundled deals with Sun servers pre-installed with Weblogic App Server and Oracle Database and ready to go? I'd like that.

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