Oracle's Acquisition of Sun Microsystems
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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 |
Abstract Case Intro 1 Case Intro 2 Excerpts
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...
Exhibits
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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