Many big tech hardware makers are expanding into services. Hewlett-Packard last year bought Electronic Data Systems; Dell agreed last month to buy Perot Systems; and Xerox cut a deal for Affiliated Computer Services, also last month.
In order to win European Union regulatory approval for the pending acquisition of Sun Microsystems, Oracle may need to spin-off or sell Sun’s MySQL open-source database business, according to analyst Trip Chowdhry, of Global Equities Research.
The Oracle acquisition machine struck again Thursday, as the software giant snapped up GoldenGate Software, a closely held company whose products help businesses tie together data stored in different systems.
Shares of database vendor Sybase, which competes with Oracle, are up $1.46, or almost 5 percent, today at $33.85, after the company reported sales fell 2 percent from the year-earlier period but still beat analysts’ estimates. Profit was also higher than expected.
SAP’s new CEO Leo Apotheker says the software giant will focus on its core software business, even as its rivals expand beyond their traditional boundaries.
The latest trend in the tech industry–at least among its biggest companies–is to offer products and services that used to be provided by partners.
Oracle CEO Larry Ellison, not busy enough already with his various acquisitions, has been ensnared in a spy drama involving an employee of his BMW Oracle yacht racing team.
Oracle shares actually have gained ground since the company announced its plans to acquire Sun Microsystems thanks in part to the company’s promises to make the deal rapidly accretive to earnings. But in their enthusiasm for the deal, investors may be ignoring some significant risks.
Oracle pounced on Sun Microsystems a week ago, agreeing to buy the battered server maker for $5.6 billion, excluding Sun’s cash.
Sun Microsystems will issue its quarterly financial results on Tuesday afternoon, right on schedule, despite the looming takeover by Oracle. But Sun won’t hold a conference call; the company says it plans to simply post a press release and associated financial slides on its Web site.
In a stunning turn of events, Oracle this morning announced perhaps its most aggressive acquisition yet, agreeing to acquire Sun Microsystems for $9.50 a share in cash, or $7.4 billion. Net of balance sheet cash and debt, the deal is worth $5.6 billion. The news follows the reported recent collapse of talks between IBM and Sun.
Yesterday’s rumors about a potential acquisition by Oracle of Red Hat have apparently faded, but Larry Ellison’s appetite for doing deals is never sated. Whether or not Oracle decides to take a run at Red Hat, it is not going out on a limb to suggest that at some point Ellison is going to get the itch and make more acquisitions.
Oracle shares today have rallied impressively following last night’s better-than-expected results for its fiscal third quarter ended in February. The analysts who track the stock were generally impressed with the numbers; I would note that is the same crew that had been cutting expectations heading into the quarter. (Though even most of the estimate-cutters continued to recommend the stock.)
Thomas Weisel Partners analyst Tim Klasell this morning trimmed his EPS estimates and price target for Oracle ahead of the company’s earnings report for the fiscal third quarter ended February, which is due on Wednesday afternoon.
Global Equities’ Trip Chowdhry thinks so. His theory is that companies trying to hold onto talent while waiting out the recession will do so by shifting to a four-day week. Workers’ salaries would be reduced by 20 percent, but so would their commuting time. Totally worth it, right? Here’s the kicker, though: Chowdhry also contends that widespread 20 percent salary cuts means real estate prices in the Bay Area will be forced down from “artificially inflated prices.” Where do I sign up?
More analysts are cutting estimates on Oracle ahead of its earnings report on Dec. 18. David Hilal of Friedman Billings Ramsey expects the company to perform at the low end of guidance. But while Oracle is expected to implement cost-cutting measures–with only 23 percent loss in stock price (compared to 41 percent for the Nasdaq Composite and 39 percent on the S&P 500)–at least it’s beating the market. For now, anyway.
This is a section of the All Things Digital Web site featuring posts from around the Web, from other Dow Jones properties and also original pieces we solicit. The section is now explicitly labeled that it comes "from other Web sites."
We are fully aware of the controversies around how linking and aggregating is done on the Web and we, in no way, are attempting to "scrape" original content created by others. Instead, regarding third-party posts, we are trying to point readers of this site to other posts from around the Web that we admire and are trying to do so in the quickest manner possible.
The Internet is full of terrific content that is not ours and we want to help our readers find it by making editorial suggestions--Look, Mom, no algorithm!--of posts we think are worth their time.
That is why we have made even more changes to Voices to ensure we do this in the most transparent and timely way. While we don't expect that everyone will agree with our policies, we have made changes that reflect our intent in pointing to content outside our site.
So here is exactly what we do:
Because the site is wholly owned by Dow Jones, publisher of The Wall Street Journal, we aim to adhere to the journalistic standards of the best of the mainstream media. But, because it is run autonomously as a small online startup, we aim to exhibit the fresh thinking and nimbleness of the best of the new media. We want to be first, and sassy, but also well sourced and accurate. We will offer lots of opinion and analysis, but plenty of fact as well.
D is unlike any other executive conference. Since its debut in 2003, D has brought to life the energy and excitement of the digital revolution in an unscripted, upfront and unparalleled way. Read more »
Don't miss a post! Sign up for our Daily Email and get AllThingsD.com delivered each day.
Get columns, blogs and video from D and All Things Digital on your iPhone. Download now »
