After a couple of weeks of rumors about a possible acquisition of Sun Microsystems by IBM giant, today a totally surprising news came out: Oracle acquires Sun for approximately $7.4bn.
From the press release:
We estimate that the acquired business will contribute over $1.5 billion to Oracle's non-GAAP operating profit in the first year, increasing to over $2 billion in the second year. This would make the Sun acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined (Safra Catz, Oracle)
From the Java platform touching nearly every business system on earth, powering billions of consumers on mobile handsets and consumer electronics, to the convergence of storage, networking and computing driven by the Solaris operating system and Sun's SPARC and x64 systems. Together with Oracle, we'll drive the innovation pipeline to create compelling value to our customer base and the marketplace. (Jonathan Schwartz, Sun)
At the moment I must confess that I'm stunned and I don't know how to feel about it. And following Twitter coverage it looks like I'm not the only one:
piewords: @irsanw Didn't see this one coming...
synkdorbit: Oracle acquiring Sun Microsystems? No kidding.. Last week IBM declined to buy them
NOWatkins: Woah... Oracle bought Sun Microsystems. That came out of nowhere.
Leaving aside big questions like: what will happen to MySQL?, how is IBM feeling now?, I'd really like to hear:
2 comments:
WOW...I did not expect that :|
Sun buying MySQL is one thing..but Oracle buying MySQL..that's just scary
A survey conducted by Citigroup amongst major institutional investors provided the following insight on todays markets:
The favored sector is Tech and this sector has held the top position over the last 12 months. Growth stocks are also a hot item of late, the market sees the economy in a more positive view for the second half of the year and this should bode well for growth stocks. An additional upside of 6% is expected from current market levels to the end of the year. The majority of this optimism is due to the market rally since March, investors believe the market has bottomed. Regardless of the expected drop (approximately 20%) in earnings this year, a common consensus is the rebound in 2010 will be in the double digits. I’m certain Oracle has this information in mind prior to its acquisition.
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