Re: Oracle Offers $5.1 Billion for PeopleSoft

wizofoz2k_at_yahoo.com.au (Nuno Souto) wrote in message news:<73e20c6c.0306091609.ea1edbd_at_posting.google.com>...
> Karsten Farrell <kfarrell_at_belgariad.com> wrote in message news:<MPG.194e56aab6eb73ff9897bd_at_news.la.sbcglobal.net>...
>
> > I suppose that means Oracle will increase their licensing fees to pay
> > for it.
>
>
> :) You mean, like M$ does?
>
> Oracle should have used mergers to grow further, AGES AGO.
> They should never, ever, ever, have let IBM take over Informix.
> Now is a bit too late to start and PS is gonna be a tough bone
> to chew...

As others have pointed out, there was a merger mania, and Larry was right to wait for the fallout. AOL/Time Warner was merely the biggest. This is a much better time to start than 2-5 years ago, pick up stuff for pennies on the dollar. Just like Rdb! Larry is too rich to make a bad deal for PS.

>
> But I'll bet if they are successful, it won't stop there: they have
> to start growing by takeover, there is only so much they can do
> by licence costs. Writing was on the wall 5 years ago, they just
> tried to delay the inevitable. With not much success and a lot
> of hurt to shareholder value and customer base.

I don't think there was much else they could have done. MS skimmed off the smaller shops (and lower end of government shops), entirely predictably, how much of the large shop base have they won or lost? The hurt to shareholder value is minimal, most of it is perception of the lack of growth being a bad thing - in spite of that (perhaps because most tech stocks have tanked), Oracle is trading near its 52 week high.

>
> This one is gonna be fun to watch. They'll have to fight not only
> PS's mgt but also general market pre-disposition to downgrade them.

As fun as watching a traffic accident between a train, a gasoline truck, and a schoolbus (Tip 'o the hat to Calvin & Hobbes for that one!).

>
> Cheers
> Nuno Souto
> wizofoz2k_at_yahoo.com.au.nospam

jg

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