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.

Post a Comment:

Comments are closed for this entry.

« Singapore GDP contra... | Main | Earth Day 2009 : So... »

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out