Lots of buzz around the second mega acquisition of the day ($5.8B), seeing Oracle eating up Siebel Systems for dessert. Given that the company has about $2.2B cash on hand, Oracle is paying $3.6B, i.e about 2.7X Siebel’s trailing revenues.
The best quote about the deal comes from… SalesForce.com’s Marc Benioff (who worked at Oracle, and made $25M or so as an early stage investor in Siebel if memory serves me right) in his note to employees:
Oracle put Siebel investors out of their misery today. We have been doing that for Siebel customers for years. Our announcement today at Dreamforce will accelerate that. It’s the end of software. Client/Server software is being consolidated by Oracle just as mainframe software was consolidated by Computer Associates. Oracle’s strategy is simple, instead of innovating, buy as much installed software as possible, call it all Oracle Fusion, and make sure it all uses Oracle’s database.
Now, the same … Read more »