Oracle suggested that this purchase "transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems".

Oracle come in just weeks after Sun they rejected IBM’s $7 billion bid.

Software manufacturing giants, Oracle have released that they are to purchase Sun Microsystems who are also in the software and hardware market for a huge sum of $7.4billion which in UK pounds is around £5.1 billion.

If Oracle are buying at $7.4 billion, according to Sun’s board of directors, each share is worth $9.50 per share which is still quite expensive in this current economic climate, still surprises me that Cisco have not put a bid in for the prestigious company as Sun have been hinting at a number of buyers who maybe interested.

Sun Microsystems desperate?

You may think Sun are doing profit wise, with $13.3 billion turnover in the last 4 quarters though the stat people miss out is the $1.9 billion they did lose at the same time. Sun, according to many analysts have been in financial difficulties for some time now, as they are not such a big company, they need a huge company like Oracle who can back them up in all aspects including finances and latest software releases.

This upcoming deal with Oracle could be so much better than the one broken down with IBM as they are not overlaping in the market, as IBM and Sun would hold less of the market. As Oracle are buying Sun Microsystems, they can utilize any products that they offer to advance their technologic software and also even more middleware features which, incidentally, Oracle’s middleware is on Sun’s Java language and software.

Sun Microsystem’s chairman, Scott McNealy, additionally said,

“Oracle and Sun have been industry pioneers and close partners for more than 20 years. This combination is a natural evolution of our relationship and will be an industry-defining event.”

After having high prospects from these talks with Oracle, the deal could go ahead as early as summer.

In additon to McNealy comments, Oracle President Safra Catz released,

“This would make the Sun acquisition more profitable in per-share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined,”

In terms of shares, for Sun they leaped 36.8% ($2.46) to an astonishing $9.15 in the pre-empted market. However, Oracle shares did the opposite in falling 3.6% to a respectable $18.38.

All this news is well and good until you find there is a bad point, which there is always seems to be. In this case, it is the loss of hard earned jobs, yet again. As Sun, created the Solaris operating system and the developer of the Java programming language, there were bound to be a lot of bad news.

The figures are still to be reviewed by the companies as there could always be room for lay offs. Currently, Oracle employ 86,000 people and Sun have 33,000 hard workers employed. Anything can happen to those workers as well as us, so the best advice in these economic times is to work hard and keep your head down!