Todays hot news from Santa Clara are as follows:
"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."
This is a surprising announcement, just two weeks after IBM has withdrawn it’s offer for SUN Microsystems. This is even better for SUN shareholders, because it surpasses IBM’s offer and even outpaces last weeks value of each SUN share by $3 (average was aproximately $6.5).
This merger makes sense, because Oracle has been using Java and Solaris for years now. We’re going to see complete packages from the merged Oracle/SUN (can we call it Oracle-Sun?) that enable to plug and play the entire system into their datacenter without having to deal with incompatibilities between hard and software. It looks like Larry Ellison’s shopping spree isn’t stopping any time soon – after all, in the past five years, Oracle bought more than 50 companies, spending more than 23 billion dollars in the process.