Oracle's Acquisition of Sun Microsystems

Oracle's Acquisition of Sun Microsystems
Case Code: BSTR336
Case Length: 18 Pages
Period: 2009
Pub Date: 2009
Teaching Note: Not Available
Price: Rs.300
Organization: Oracle Corporation, Sun Microsystems
Industry: Information Technology and Related Services
Countries: US
Themes: Mergers and Acquisitions
Oracle's Acquisition of Sun Microsystems
Abstract Case Intro 1 Case Intro 2 Excerpts


The Acquisition

With the onset of the recession in the US, affluent shoppers began shopping at Wal-Mart. At the same time, lower income and middle income shoppers, who had been regular at Wal-Mart, were not impacted much by the significant fall in the stock and mortgage markets...

The Synergies

Analysts felt that the deal between Oracle and Sun was better than a deal between IBM and Sun would have been. They felt that Oracle did not have major product overlaps with Sun unlike IBM. Moreover, after deal was closed, Oracle would be in a position to provide a fully integrated system to its corporate customers to address their business needs...

The Challenges

Some critics were skeptical about the profit expectations that Oracle had after Sun's acquisition. They felt that Oracle was good at making profits by selling software products and all of its acquisitions in the past had been that of software companies. However, its inexperience in running a hardware company like Sun might not work in its favor and it might even lose focus on its core strength, its software business...


Exhibit I: List of Oracle's Acquisitions
Exhibit II: Financial Statements of Oracle (2004-08)
Exhibit III: Stock Price Chart of Sun Microsystems (January 1997 - April 2009)
Exhibit IV: Financial Statements of Sun Microsystems (2004-08)
Exhibit V: Sun Microsystems Quarterly Income Statements (2008)
Exhibit VI: A Note on the US IT Industryc

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