Oracle to Buy Sun

Oracle today said it would buy Sun for about $7.4 billion, or $9.50 per share. The move gives Oracle both a significantly stronger position in databases, letting it produce the servers that run its apps, as well as access to Sun's software. Oracle will have access to Java as well as Sun's Solaris operating system and promises to invest heavily in both.

The buying firm says it remains committed to Linux but says it's likely to optimize its database software for Solaris and Sun's hardware. Both firms were already close thanks to database software running on Sun systems, and Oracle Fusion Middleware depends on Java, Oracle notes. It also says the deal should be immediately successful as the transaction will add about $1.5 billion to Oracle's profit even within the first year.

All of Sun's board has approved the deal; Sun shareholders and US regulatory officials will still have to greenlight the takeover plan. When the two companies plan to finalize their agreement isn't mentioned.

Sun's deal is a blow to IBM, which had turned down a lower price as too high, and creates a more substantial competitor against IBM, which has often run both its own hardware and software. It likewise pressures Microsoft, which is one of the few closed-source rivals to IBM and Oracle in databases.

By Electronista Staff