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Pages:
5 pages/≈1375 words
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5 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
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MS Word
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Topic:

Mergers and aquisitions

Essay Instructions:
Oracle-Sun Merger Technology giants Oracle recently announced their intention to purchase Sun Microsystems for over seven billionaires. It is not clear if the merger will go through - it still has various regulatory hurdles to cross but perhaps by the time you are completing this assignment the merger will have already gone through (or have been denied by regulators). Regardless, the focus should be on the potential of this largescale merger between Oracle and Sun. As you know from reading the material in the background materials, mergers can bring about great rewards but also can bring great risks and pitfalls. For this assignment, do some research concerning the arguments both for and against such a merger from a financial perspective. For this module we are not so concerned with how consumers may fair, as this is an issue for the government to consider if they have to approve this merger. Instead you are considering this from the point of view of whether or not such a merger would be a profitable undertaking that would add value to the shareholders of both corporations. There is a huge amount of articles on this potential merger, but here is one link to get you started: http://www(dot)sun(dot)com/third-party/global/oracle/ But do not limit yourself to this article. Use various internet search engines such as news.google.com for the latest news on this merger. Look at the webpages for Yahoo and Microsoft. Then write a five page paper answering the following question: Do you think a merger between Oracle and SUN would add value to the shareholders of both corporations? In your answer, consider the following issues: 1. The impact on Oracle shareholders 2. The impact on Sun shareholders 3. The financial condition of both corporations 4. Why might Oracle and SUN combined as one company be more profitable than they would if they remain independent? 5. Potential pitfalls - might the combined entity actually be less profitable than either company operating independently? Case Assignment Expectations In the grading of your assignment, you will be assessed on the following items: 1. The use of multiple references beyond just the link mentioned above. The link above is just to get you started, but your ability to do your own research beyond these two articles will be assessed. 2. Your paper from beginning to end on the precise assignment question. No need for lengthy background information. Your very first paragraph should include a direct answer to the assignment question, with the body of your paper focused on defending your answer. 3. Your paper should be five pages in lengths.
Essay Sample Content Preview:

MERGERS AND ACQUISITION: THE SUN AND ORACLE MERGER
Name:
Grade Course:
Tutor’s Name:
(06, September, 2010)
Mergers and Acquisition: The Sun and Oracle Merger
According to me, the answer for this question will be yes. This is clear to see as the sun Microsystems is a company that in the past years have been perpetually indicating loses. Hence it has been reporting less income for its fewer sales. While, the Oracle corporation being multinational company will improve itself by introducing a wide range of products into the market therefore giving its competitors such as the IBM, Dell, Compaq, Intel and other computer manufacturing companies a run for their money for introducing a product that will cater for the needs of its clients and customers in general ( HYPERLINK "/user/Profile.aspx?UserName=James%20Niccolai" Niccolai, 2009).
This move will be of great benefit to either the Shareholders of this two organizations this is because the merger between the two organizations will result to both the organizations to be under the same management that will result to the companies experiencing increased sales of its products. Therefore, making the companies shareholders to experience some increase in the values of their sharers (Sun and Oracle, 2009).
The Sun Microsystems is a corporation that was founded in February, 1982, with its headquarters in Santa Clara, California. It was founded as a corporation that deals in the selling of computers, computer software, computer components and it also offered information technology services to its clients and customers.
It has a wide range of products to its clients and customers that includes computer workstations and servers, processors, storage systems and a suite of soft ware products. It also manufactures its products in its manufacturing factory located in the Hillsboro, Oregon. In the beginning of the year 2010, the sun Microsystems merged with the Oracle Corporation, a merger that costed the two companies an estimated amount of US$ 7.4 billion this was after an agreement that was sighed between the two companies back in April 2009 (Burrows, 2009).
The oracle corporation is commonly known as (NASDAQ: ORCL), is a database management systems corporation that was established back in the 1977 as a system developing company that was known as Software Development Laboratories (SDL). However, it later changed its name to Relational Software, Inc (RSI) in the year 1979. After going through diverse management changes and product in 1982, the company finally changed its name to the current one the Oracle Systems, in attempts aimed at aligning itself to its product known as the Oracle Database, and later it changed its name to the Oracle Corporation.
With the oracle Corporation being a multinational computer technology company which develops and markets software products, with its headquarters’ in Redwood Shores, in California. The company has employed more than 125,0...
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