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Merger between Oracle and SUN - Value to Shareholders

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?

Solution Preview

** Please use this for reference only and do not submit this as your own work. The document is for REFERENCE PURPOSES only and is meant to provide you with ideas for the assignment***

// The solution provides number of points that can be discussed under each heading and also provides proper references that you can use. Please use the points mentioned below each heading and expand the answers//

Introduction:
• 27th January 2010 - Oracle and Sun merged. The main reason for the merger was to cut competition and to become one strong company by itself.
• Oracle has worked towards building the various hardware and software of Sun and brings in newer investments that can be used to ensure better innovativeness and success for customers of both companies. One of the biggest and most talked about mergers this year has been the Sun Oracle merger.
• //Please provide a brief overview of the paper here.//

Merger and the Shareholders:
• The merger has been very helpful for both companies and the shareholders of both have benefited.
• Issues that have been prevalent in the organizations individually are now being treated and improved. These improvements simply mean more sales and higher revenue which in turn simply means that the shareholders earn more.
• The businesses provide the shareholders with a high return and together the two companies are able to beat the tough competition that they faced from companies like Microsoft. Hence with the increased availability of resources and a combination of excellent products, the company will be able to generate higher revenues thereby providing the shareholders with better results and returns.

Sun Oracle Financials:
• Sun has highlighted ...

Solution Summary

The solution provides a clear and complete solution for the merger between Oracle and Sun. The paper also provides a list of effects of the merger on each of the companies, and the benefits and drawbacks of the mergers. The document contains 1011 words and a total of 5 references.

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