Oracle to buy Sun for 7.5 billion

Discussion in 'Apple, Inc and Tech Industry' started by Full of Win, Apr 20, 2009.

  1. Full of Win macrumors 68030

    Full of Win

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    #1
    http://money.cnn.com/2009/04/20/technology/Oracle_Sun/?postversion=2009042008

    :eek: wonder what this means for ZFS and Apple, if anything.

    NEW YORK (CNNMoney.com) -- Business software maker Oracle Corp. said Monday it has entered into a definitive agreement to buy server builder Sun Microsystems in a deal worth $7.4 billion.

    Oracle (ORCL, Fortune 500) said it will buy Sun (JAVA, Fortune 500) common stock for $9.50 per share in cash, a 42% premium from Friday's closing price of $6.69.

    After accounting for Sun's cash and debt, the deal's value is $5.6 billion, the companies said.

    The Redwood Shores, Calif.-based Oracle said it expects Sun to contribute over $1.5 billion to its operating profit this year, and over $2 billion in the second year.

    On a per share basis, Oracle expects Sun "to be accretive" to its adjusted earnings by at least 15 cents in the first full year after closing. The deal is expected to close this summer, Oracle said.

    The announcement comes after Sun reportedly rejected a $7 billion buyout offer from IBM (IBM, Fortune 500) earlier this month.

    "The acquisition of Sun transforms the IT industry," said Oracle chief executive Larry Ellison, in a statement. "Our customers benefit as their systems integration costs go down while system performance, reliability and security go up."

    Oracle said it sees "strategic customer advantages" to owning two of Sun's most popular software products: the programming language Java and the Solaris operating system.

    "This is a fantastic day for Sun's customers, developers, partners and employees across the globe," said Jonathan Schwartz, Sun's chief executive. "Joining forces with the global leader in enterprise software to drive innovation and value across every aspect of the technology marketplace."

    The deal is subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions. To top of page
     
  2. edesignuk Moderator emeritus

    edesignuk

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  3. Lone Deranger macrumors 65816

    Lone Deranger

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  4. pilotError macrumors 68020

    pilotError

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    #4
    Bad news for everybody.

    Oracle has a nasty habit of picking the pieces of a company apart and then selling off the worthless carcass that remains.

    Wow... The antitrust commission should just shoot this one down...
     
  5. sreedy macrumors 6502a

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    #5
    Be interesting to see what happens to mysql , and Java for that matter.
     
  6. iJawn108 macrumors 65816

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  7. twoodcc macrumors P6

    twoodcc

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    #7
    very interesting.
     
  8. ChrisA macrumors G4

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    #8
    I was pretty excited about the IBM deal. But if this deal with Oracle goes down it's pretty much the death of Sun.
     
  9. cube macrumors G4

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    #9
    You have it backwards.
     
  10. Saladinos macrumors 68000

    Saladinos

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    #11
    It never really made sense for Apple to buy Sun. Most of their products (things like Java and Solaris) would have simply been scrapped because Apple didn't need them.

    Apple does need to bring in server expertise, and on that front Sun would be ideal. Unfortunately it wouldn't justify the $7Bn price tag. Maybe Apple will be able to hire people leaving Sun due to the acquisition, or maybe they're just not going to concentrate on the corporate and server markets.
     
  11. mmccaskill macrumors 6502

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    #12
    Goodbye Solaris, SPARC, VirtualBox and Java. Now all Oracle needs to do is buy RedHat(JBoss). Could kill both at the same time.
     
  12. BornAgainMac macrumors 603

    BornAgainMac

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    #13
    MySQL should either die or get a real backup tool. Dumping your database or doing cold backups is not a good backup method compared to using Oracle's RMAN utility.

    SPARC will probably meet it's end too.
     
  13. Doctor Q Administrator

    Doctor Q

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    #14
    As a database programmer, a member of the Oracle developer program, a MySQL user, and a Solaris user and administrator, I'm surprised at this deal and very very interested in how it plays out.

    Why do you think so? That's a mighty big part of what Sun is. I can understand spinning off MySQL, but not jettisoning Sun's core businesses or Sun's own technology.
     
  14. twoodcc macrumors P6

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  15. ravenvii macrumors 604

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    #16
    Not necessarily. Solaris has been open sourced as OpenSolaris. VirtualBox is open source. Java has been open sourced.

    Those projects will live on as long as there's open source developers willing to continue developing it.
     
  16. Doctor Q Administrator

    Doctor Q

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    #17
  17. Evangelion macrumors 68040

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    #18
    I wonder what this means for Suns hardware-business... It would be a shame to see of die. Another thing that interests me is what this means for Linux. Oracle is a big supporter of Linux. I wonder if Oracle is going to start making bits and pieces of Solaris available for Linux.
     
  18. Small White Car macrumors G4

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    #19
  19. Supa_Fly macrumors 68040

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    #20
    Indeed!

    Wonder how this will affect Blackberry and other J2ME licensees?! I know SUN's trouble along with Microsoft's has been the reason for the delay in MIDP3.0 or JSR 271. Wonder how J2ME as a whole will continue or die or evolve into Java FX?

    I thought Sparc was already dead.

    ^ LMAO ... Motorboat! ;)
     
  20. Pika macrumors 68000

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    #21
    I use MySQL for my forum board database. Is this going to change? Like the time when Adobe bought Macromedia?
     
  21. BTW macrumors 6502

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    #22
    If Oracle is smart they'd take all the software and sell-off the hardware business to the likes of IBM, HP, Dell, or even :eek: Apple. I'm sure Larry and Steve are still buds. ;)
     
  22. Darth.Titan macrumors 68030

    Darth.Titan

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    #23
    You guys really should read this before asking some of these questions. There is some good info here. Besides, this is not exactly a done deal just yet...
     
  23. hooch macrumors member

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    #24
    Sparc chips are very very good chips imo. We are in the process of ordering two 5240s with the T2 chips to consolidate about 20 servers down to two. Should really save the company money on power consumption and Oracle licensing. Solaris containers are really cool and I am still a bigger fan of Solaris than Linux. I know I am in the minority, but I just don't see the lovefest with moving everything to linux.
     
  24. tyr2 macrumors 6502a

    tyr2

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    #25
    To me this make so much more sense than the IBM deal. Hopefully it secures the future of Solaris, Oracle have clearly wanted their own OS for some time and Solaris is the perfect opportunity. Having a hardware arm as well enables Oracle to sell a 'database to disk' solution, if they get this right this can be a really good sell.

    As to SPARC I'm not sure. The T2 processors are really excellent and if Rock ever sees the light of day then SPARC really might start capture some mind share again.

    Oracle are well invested in Java as well, so I'd hope it has a bright future.

    Who knows what'll happen to MySQL, there's a market for it but how big it is in the long term really remains to be seen.
     

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