Announcement

Collapse
No announcement yet.

Oracle To Buy Sun (and MySQL) For $7.4 Billion

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Oracle To Buy Sun (and MySQL) For $7.4 Billion

    Oracle Corporation is to buy Sun Microsystems for $9.50 a share in a deal valued at $7.4 billion, just a few weeks after a deal by IBM to buy Sun fell apart. It looks like Oracle will pay a premium of $2.81 a share, or 42%, over Sun Micro’s closing price of $6.69 a share on Friday.

    Oracle said the deal is valued at $5.6 billion excluding cash and debt. Oracle is calling Sun’s Java “the most important software” it has ever acquired. The deal, which is expected to close in the Summer, has massive implications for the future openness of Java and MySQL.

    The official release:

    Oracle to Buy Sun
    SANTA CLARA, Calif. April 20, 2009 Sun Microsystems (NASDAQ: JAVA) and Oracle Corporation (NASDAQ: ORCL) announced today they have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt.

    “We expect this acquisition to be accretive to Oracle’s earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. 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,” said Oracle President Safra Catz.

    “The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems,” said Oracle CEO Larry Ellison. “Oracle will be the only company that can engineer an integrated system - applications to disk - where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up.”

    There are substantial long-term strategic customer advantages to Oracle owning two key Sun software assets: Java and Solaris. Java is one of the computer industry’s best-known brands and most widely deployed technologies, and it is the most important software Oracle has ever acquired. Oracle Fusion Middleware, Oracle’s fastest growing business, is built on top of Sun’s Java language and software. Oracle can now ensure continued innovation and investment in Java technology for the benefit of customers and the Java community.

    The Sun Solaris operating system is the leading platform for the Oracle database, Oracle’s largest business, and has been for a long time. With the acquisition of Sun, Oracle can optimize the Oracle database for some of the unique, high-end features of Solaris. Oracle is as committed as ever to Linux and other open platforms and will continue to support and enhance our strong industry partnerships.

    “Oracle and Sun have been industry pioneers and close partners for more than 20 years,” said Sun Chairman Scott McNealy. “This combination is a natural evolution of our relationship and will be an industry-defining event.”

    “This is a fantastic day for Sun’s customers, developers, partners and employees across the globe, joining forces with the global leader in enterprise software to drive innovation and value across every aspect of the technology marketplace,” said Jonathan Schwartz, Sun’s CEO, “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.”

    “Sun is a pioneer in enterprise computing, and this combination recognizes the innovation and customer success the company has achieved. Our largest customers have been asking us to step up to a broader role to reduce complexity, risk and cost by delivering a highly optimized stack based on standards,” said Oracle President Charles Phillips. “This transaction will preserve and enhance investments made by our customers, while we continue to work with our partners to provide customers with choice.”

    The Board of Directors of Sun Microsystems has unanimously approved the transaction. It is anticipated to close this summer, subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions.

    There will be a conference call today to discuss the transaction at 5:30 a.m. Pacific time. Investors can listen to the conference call by dialing (719) 234-7870, passcode 923645. A replay will be available for 24 hours after the call ends at (719) 884-8882, passcode: 923645. A live audio webcast of the call will be made available at www.oracle.com/investor and a replay will be available for seven days after the call ends.

    About Oracle

    Oracle (NASDAQ: ORCL) is the world’s largest enterprise software company. For more information about Oracle, please visit our Web site at http://www.oracle.com.
    About Sun Microsystems, Inc.

    Sun Microsystems develops the technologies that power the global marketplace. Guided by a singular vision — “The Network is the Computer” — Sun drives network participation through shared innovation, community development and open source leadership. Sun can be found in more than 100 countries and on the Web at http://sun.com.
    We have to worry about this deal’s impact on open source projects such as Open Office and MySQL. Oracle is known to squeeze its acquisitions for every single penny. :S

  • #2
    Hmmm.. I smell an anti-trust action coming on the database front if this passes. I know Oracle has been wanting to get into more markets for over a decade now and purchasing Sun includes both hardware and a lackluster OS to sell as well as a lot of open source projects. The question for SEC regulators will be does the combination of Oracle and MySQL AB constitute a large enough market share to constitute a monopoly and a barrier to the marketplace. IBM, Sybase and Microsoft will probably argue that it does.
    Translations provided by Google.

    Wayne Luke
    The Rabid Badger - a vBulletin Cloud demonstration site.
    vBulletin 5 API

    Comment


    • #3
      I know many articles consider mySQL a competitor to Oracle... so I guess it really depends on whether the company sees it as such and if they do, would it be wise for them to continue to fund a project that is a competitor to their larger scale DB systems?

      Especially if it can be had for free?
      Kevlar
      Bimmerforums - The Ultimate BMW Forum

      Comment


      • #4
        Isn't mysql a GPL-program? Go and fork it and everything is going to be fine
        Meow!

        Please excuse my bad English.

        Comment


        • #5
          Originally posted by Kevlar View Post
          I know many articles consider mySQL a competitor to Oracle... so I guess it really depends on whether the company sees it as such and if they do, would it be wise for them to continue to fund a project that is a competitor to their larger scale DB systems?

          Especially if it can be had for free?
          It's not really a competitor, the two exist in almost entirely different markets. No one that currently runs Oracle is going to touch mySQL with a barge poll. I think this is more likely just Oracle wanting to have a product in the low end of the database market, perhaps even make it easier to transition up to Oracle if a company wanted to. It seems like it could be a good way to tie people into their ecosystem, perhaps they'll offer hosted mySQL databases as well.

          If I remember correctly Sun were working / had a premium version of mySQL in the works that wasn't free so perhaps they think they can make money from that.
          - TomJames

          Comment


          • #6
            Originally posted by Kevlar View Post
            I know many articles consider mySQL a competitor to Oracle... so I guess it really depends on whether the company sees it as such and if they do, would it be wise for them to continue to fund a project that is a competitor to their larger scale DB systems?

            Especially if it can be had for free?
            Any competition would be with MySQL Enterprise, not MySQL Community. Oracle has been trying to get into the small database market for over a decade and cannot compete with MySQL and Postgres in that market. The biggest issue is market saturation. When is the last time you saw a webhost offer Oracle for free with an account?

            While you could argue that Oracle is a competitor, it isn't really. I doubt any of Oracles customer's are going to look at MySQL Community Edition and say, hey that can power my 150 Terabyte Database with 100% uptime, automatic failover with triple or quadruple redundancy and so forth. Likewise, people using MySQL Community on their hosting packages whethered shared, VPS, or Dedicated are going to wake up and say "I feel like spending $10 million on a new database system."

            Then you have support. A big draw of Oracle is the support provided from classes to onhand support reps. On the other hand Oracle isn't going to provide account representatives to support MySQL customers anyway. I know when I worked for Protection One, our Oracle representative had a desk in our data center. He didn't work at Oracle but instead at our facility to provide support when we needed it. Of course, it was included in the $6 million a year Oracle licensing fees.

            I would go so far as to say that MySQL, Java and Open.Office are the reasons that Oracle has bid to purchase Sun. Solaris is a dying OS that can easily be replaced with any number of Linux Distributions which don't lock you into your own hardware. Sun's hardware is good but really doesn't scale competitively these days. Sun's Open Source software initiatives are what makes it an attractive company to purchase.

            Originally posted by rellek View Post
            Isn't mysql a GPL-program? Go and fork it and everything is going to be fine
            Much more to forking a product than just copying the code. You better be an extremely well-versed database programmer if you want to attempt a fork. Probably why the existing forks of MySQL are non-existant.
            Translations provided by Google.

            Wayne Luke
            The Rabid Badger - a vBulletin Cloud demonstration site.
            vBulletin 5 API

            Comment


            • #7
              i'm curious does vbull intend to support postgres anytime soon? mysql is going to head the way of Linux with multiple distros(there's already two major forks and i'm sure more are coming0.

              Comment


              • #8
                Sun I can see it.

                I can't see MySQL being worth a lot of money at this point in time.
                I am sure many disagree with me, and I can understand that...
                MCSE, MVP, CCIE
                Microsoft Beta Team

                Comment


                • #9
                  Originally posted by Joe Gronlund View Post
                  Sun I can see it.

                  I can't see MySQL being worth a lot of money at this point in time.
                  I am sure many disagree with me, and I can understand that...
                  Except Sun owns MySQL.
                  Translations provided by Google.

                  Wayne Luke
                  The Rabid Badger - a vBulletin Cloud demonstration site.
                  vBulletin 5 API

                  Comment


                  • #10
                    7.4 billion is quite a bit of money. Its hard to believe there are things in the world worth this amount of money. I guess we won't see what impact this will have on the market for a number of years. Any predictions besides the monopoly theory as to the biggest changes to current products from both companies?
                    I love lamp

                    Comment


                    • #11
                      Sun and Oracle: End of a beautiful dream


                      Quite an interesting read about the likely to result of this purchase (if it goes through).
                      - TomJames

                      Comment


                      • #12
                        I think the question is, can we trust Oracle to develop MySQL?

                        Comment


                        • #13
                          Originally posted by sultan111 View Post
                          I think the question is, can we trust Oracle to develop MySQL?
                          Oracle has owned Innobase since 2005. Most won't know who Innobase is but they are the company that made the InnoDB table engine that is the default engine in MySQL these days. Not the most used but it is the default.

                          Oracle has owned Sleepycat Software since 2006. Sleepycat Software is the current developer of the Berkeley DB table engine which is also available in MySQL. Though Berkely DB is not as widely used as InnoDB, its a viable database engine that has been used in a wide variaty of other applications and libraries. Currently Berkeley DB is used in OpenLDAP, RPM (a Linux Package Manager) the Jabber Protocol, powers the Movable Type blogging system, SpamAssassin and Asterix, one of the most used PBX systems in the world.

                          Starting in 2006, after wanting to enter the OS market for at least a decade, Oracle started shipping Unbreakable Linux. This is a Linux Distribution based on Red Hat Enterprise and is available to Oracle's Enterprise customers (do they have anything else?). Oracle provides direct support for their Linux to customers who purchase it.

                          One thing that should be noted is that over the last decade and the 40 or so companies that Oracle has purchased, not one of them had software that directly competed with Oracle's flagship database. In cases where the acquired company had better offerings, Oracle discontinued their own offering and kept the second product.

                          What we will see as a part of this merger is that 10,000 of Sun's employees will be layed off. Or about 30%. This will probably be the sales and marketing departments first along with a good portion of the middle management team. Developers are harder to replace and it will take time for new teams to learn the ins and outs of the code purchased from Sun. If anything happens to MySQL, I would except that MySQL Enterprise will be where it is hit at. Those customers will be shown Oracle products that fit their needs and probably encouraged to upgrade. MySQL Community is under the GPL so even if they got rid of it someone could pick it up, develop and distribute it and that could be a competitor like IBM, HP or Dell. They won't let that happen.

                          The issue is at the core top level of computer sales, there are 4 competitors now instead of 5. There will probably be more consolidation in the future. Though at the middle and consumer levels there are only 5 computer manufacturers as well because Apple is in the mix as well. Maybe Apple will try to get into the high-end server market but its not something they ever tackled before. The middle and consumer tiers are also buffered by electronics companies like Sony and Toshiba that sell some computers.
                          Translations provided by Google.

                          Wayne Luke
                          The Rabid Badger - a vBulletin Cloud demonstration site.
                          vBulletin 5 API

                          Comment


                          • #14
                            MySQL founder and ex-CEO react to Oracle/Sun

                            http://www.h-online.com/open/MySQL-f...--/news/113116
                            Planning to continue using VB 3.8 post EOL? Then join the VB 3.8 Forever group and vB3Forever.org!

                            Comment


                            • #15
                              Hmm lets hope for that Monty fork... Maria isn't it?
                              Radio and TV Player for vBulletin

                              Comment

                              widgetinstance 262 (Related Topics) skipped due to lack of content & hide_module_if_empty option.
                              Working...
                              X