Sun Shareholders Approve Merger With Oracle - InformationWeek
IoT
IoT
Software
News
7/17/2009
01:50 PM
50%
50%

Sun Shareholders Approve Merger With Oracle

The deal is still being scrutinized by federal regulators, however, and the hold-up is how Oracle licenses the rights to Java.

By a margin of 3 to 2, or 62 percent, at a special meeting at Sun Microsystems' headquarters in Santa Clara Thursday, Sun shareholders gave the Oracle merger a green light .

Pending approval by the Justice Department, database titan Oracle is set to acquire Sun for $9.50 per share in cash, or $5.6 billion including Sun's cash and debt.

Neither Sun Chairman Scott McNealy or Sun CEO Jonathan Schwartz attended the meeting and the vote was over in minutes, putting an end to a 27-year-old company whose influence on Silicon Valley and the technology industry has been profound.

Oracle CEO Larry Ellison has called Sun's Java programming language "the single most important software asset we have ever acquired."

The deal is still being scrutinized by federal regulators, however, and the hold-up is how Oracle licenses the rights to Java, according to a statement issued by Oracle on June 26. [http://www.oracle.com/us/corporate/press/020174]

One analyst, AMR Research, warned this month that Oracle's acquisition of Java could "wreak havoc" in the enterprise software market because so many software vendors rely on Java for their applications.

AMR said that 33 of the top 50 software vendors depend on Java, and many of them are Oracle competitors. Oracle, along with SAP, dominates most of the enterprise software market, according to AMR.

Oracle hasn't issued a statement on the shareholder vote, but said in June that the deal would still close this summer despite the Justice Department's investigation.

Sun rival Hewlett-Packard is also preparing for the deal to close. HP on Thursday announced a "Sun Complete Care" program designed to lure Sun customers to switch to HP.


InformationWeek Analytics has published an analysis of application performance. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
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.
Flash Poll