Digital Edition

SYS-CON.TV
Ellison: Acquisition Strategy "Only Way to Survive"
Ellison: Acquisition Strategy "Only Way to Survive"

During testimony yesterday in the antitrust trial challenging Oracle's proposed takeover of PeopleSoft, Oracle CEO Larry Ellison defended the company's $7.7 billion bid for PeopleSoft Inc. as a bold but necessary move to ensure Oracle's survival in a highly competitive market.

"We thought the only way we could survive and prosper was through an acquisition strategy," Ellison testified before the crowded courtroom in San Francisco. "Oracle had to consider a strategy we had never considered before. If we wanted to survive and grow," the company decided, "we will have to start an acquisition strategy. PeopleSoft was on top of the list." Oracle had considered takeover of other companies, including BEA, Siebel Systems, and Business Objects, but focused on PeopleSoft because it had the largest number of customers.

Ellison denied that Oracle's intent was to harm its rival PeopleSoft by creating confusion with a hostile bid. If the merger does not go through, said Ellison, "We would have wasted a tremendous amount of money and time. It would have been a big mistake."

Ellison affirmed that Oracle was trying to acquire PeopleSoft's customer base, not its technology, as an enlarged customer base would encourage Oracle's development of improved and lower-priced products. "This is not about PeopleSoft or its technology. It's about buying customers. He (Ellison) was very blunt about that," commented Justice Department lawyer Renata Hesse. The U.S. Department of Justice has tried to block the takeover, which it claims is anti-competitive, would result in higher prices, and would stifle innovation.

Ellison testified that Oracle's earlier merger attempts with PeopleSoft failed because PeopleSoft CEO Craig Conway wanted to head up the new company. PeopleSoft claims that the deal collapsed because Oracle wanted its business applications to run only on Oracle database products, which was unsatisfactory to PeopleSoft. Final arguments in the trial are scheduled for July 20.

About Java News Desk
JDJ News Desk monitors the world of Java to present IT professionals with updates on technology advances, business trends, new products and standards in the Java and i-technology space.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1

Ha Ha Ha, give e''m hell Larry o''l buddy...




ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

Most DevOps journeys involve several phases of maturity. Research shows that the inflection point wh...
Dynatrace is an application performance management software company with products for the informatio...
Today, we have more data to manage than ever. We also have better algorithms that help us access our...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: D...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held Novemb...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, ...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018,...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing w...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news an...
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | ...
Enterprises are striving to become digital businesses for differentiated innovation and customer-cen...
Consumer-driven contracts are an essential part of a mature microservice testing portfolio enabling ...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitori...
Adding public cloud resources to an existing application can be a daunting process. The tools that y...
A valuable conference experience generates new contacts, sales leads, potential strategic partners a...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can ...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple ...