Print 29 comment(s) - last by ChuckDriver.. on Apr 22 at 10:47 AM

IBM's loss is Oracle's gain

Sun has been shopping around for a buyer to help it turn around its falling profits and margins for a while. IBM and Sun were in talks over a potential deal -- IBM offered Sun $9.40 per share and the offer was met with resistance by Sun's board.

That resistance led IBM to walk away from the negotiations. The Wall Street Journal reports that Oracle has now agreed to purchase Sun for $9.50 per share. The value of the transaction is $5.6 billion and excludes Sun's cash debt. Sun reportedly had about $2.6 billion in cash and short-term investments and $700 million in long-term debt as of December 28, 2008.

A Sun/Oracle merger makes sense with Sun servers being sold with Oracle database software for a long time. Buying Sun will allow Oracle to offer complete solutions of hardware and software to businesses looking for a one-stop shop.

Other than the issue with IBM offering less than Sun's board wanted for the company, reports had IBM being concerned about antitrust issues stemming from the purchase. Oracle is believed to have less of an antitrust issue since it has fewer businesses that compete directly with Sun.

Oracle executives believe that the purchase will pay off quickly for the company despite the fact that Sun has been posting losses for the last three quarters. Sun is expected to add more than $1.5 billion to Oracles operating profit excluding charges and other items in the first year with that number growing to over $2 billion the second year after the purchase.

The Wall Street Journal reports that some analysts were stunned by the purchase. AMR Research analyst Bruce Richardson said, "The last thing you expected was a database-software company to buy a hardware customer base."  

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: A dime more a share...
By segerstein on 4/20/2009 5:58:27 PM , Rating: 2
I'm not exactly sure what on earth you are talking about.

BB = 99.99% Java based

Yes, I wrote that BB is the only smartphone that relies on Java. But Java (MIDP) is no competitor to native OS programs in terms of access to OS APIs, speed and memory usage. But BB applications are not confined to MIDP APIs, but for the most part use BB specific APIs.

Smartphones = phones that can run SW other than MIDP

RE: A dime more a share...
By TomZ on 4/20/2009 6:30:13 PM , Rating: 1
So basically Java on mobile suffers from the same fundamental problems as Java on desktops.

RE: A dime more a share...
By omnicronx on 4/20/2009 6:46:00 PM , Rating: 2
But Java (MIDP) is no competitor to native OS programs in terms of access to OS APIs, speed and memory usage.
At the OS level, without a doubt, at the application level, many would disagree depending on the situation. You also cannot discount the cross platform aspect. The difference between code between one platform to the next can be almost nothing depending on the differences in hardware. Opera Mini is a perfect example of this. Its faster than any other browser, even those that have taken the same approach and are based on webkit programmed using native code. (see bolt vs opera mini)

And Why focus on BB? Symbian is still has more marketshare than all other smartphone OS's combined. Yet their entire Application Layer is Java based.(but the OS itself is not)

"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
Related Articles
IBM Walks Away from Sun Negotiations
April 6, 2009, 11:20 AM

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki