Software // Enterprise Applications
News
10/25/2005
03:34 PM
Connect Directly
RSS
E-Mail
50%
50%

DOJ Probing Oracle Again, This Time Over Siebel

Unlike PeopleSoft, this Justice Department investigation is unlikely to cause a long delay

Having prevailed in a clash with the U.S. Department of Justice over its purchase of PeopleSoft, Oracle is again under the DOJ's antitrust scrutiny. Oracle received a second request for information from the DOJ as part of an investigation into Oracle's proposed $5.9 billion acquisition of Siebel Systems. Siebel received a similar request.

The DOJ is considering whether the deal will give Oracle too much control over the market for customer-relationship-management software, and its request extends a 30-day waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act.

Unlike its previous antitrust skirmish, which delayed the PeopleSoft acquisition for months, Oracle appears less likely to get sidetracked here. " I don't think it's going to stop (the deal)," says Yankee Group analyst Sheryl Kingston. "It's not a hostile takeover, and there are a lot of logical reasons for Oracle to buy Siebel." The only reason that might arise, Kingstone says, is if the DOJ concludes there's too much consolidation if the overall enterprise software market, now that Oracle has bought PeopleSoft.

In a research note, UBS Investment Research analyst Heather Bellini also predicts that despite the request for information, she still expects the deal to close in early 2006.

Comment  | 
Print  | 
More Insights
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Must Reads Oct. 21, 2014
InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and trends on InformationWeek.com
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.