Oracle to buy Sun
Monday, April 20th, 2009
Before I speak about where I’ve been lost in the past few days or I should rather say over a month. I should rather speak out more about one of the latest and hottest news in the silicon valley and the future of many Sun’s open source technologies like Java, MySQl, etc
Oracle Corp. (NASDAQ: ORCL) announced a deal to buy Sun Microsystems Inc. (NASDAQ: JAVA) for $7.4 billion, a shock unification of software and hardware companies that emerged following failed talks for International Business Machines Corp. to buy Sun.
As the NY Times stated, Oracle and Sun are two heavyweights that have been partners for more than 20 years, even if Oracle has been distancing itself a bit from Sun’s server line in favor of competitors like HP and Dell lately because of Sun’s business decline. As a result of this deal, Oracle will now become a behemoth in both the software and the hardware market, and the implications this acquisition will have on the its closest rivals and the market in general will be noticeable for years to come.
According to Oracle the deal is valued $5.6 billion excluding cash & debt. As of Dec. 28, Sun had about $2.6 billion in cash and short-term investments and about $700 million in long-term debt.
Larry Ellison, Oracle’s chief executive, in a conference call described Java as “the single most important software asset we have ever acquired.” As a result of the deal, he expects Oracle to be able to offer customers application programs, computers and data-storage hardware in a bundle that will be tuned to help solve their problems.
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