Oracle Steps in and Picks Up Sun
The total price of the deal will be approximately $7.4 billion, but since Sun brings $1.8 billion of net cash to the deal, the net cost to Oracle could be as low as $5.6 billion.
The news comes almost exactly a month after IBM reportedly made its own offer for Sun, in a deal from which Sun ultimately walked away. The Wall Journal reported that Sun officials felt that IBM's offer of $9.40 per share had been too low.
On a conference call announcing the deal this morning, Oracle president Safra Catz was bullish on the deal, saying that it would provide a greater per-share contribution than Oracle's acquisitions of BEA, PeopleSoft and Siebel combined.