10 Reasons BEA Should Accept Oracle Takeover10 Reasons BEA Should Accept Oracle Takeover
October 12, 2007
Okay, folks. The VAR Guy finally had some time to think about Oracle’s proposed $6.7 billion takeover of BEA Systems. Here are 10 reasons why BEA Systems should say yes to the deal.
10. Takeover Triple Play: Oracle acquired PeopleSoft, Siebel and now Hyperion. Oracle kept those companies’ custoemrs happy — for the most part — which was a miracle. The VAR Guy suspects Oracle would keep BEA customers happy, too.
9. The $1 Billion Challenge: BEA’s annual revenue, at around $1.3 billion according to Yahoo Finance, is in an awkward neighborhood. BEA is no longer a small company — yet doesn’t have the clout of a massive software provider. Numerous companies have collapsed when they hit the $1 billion mark. Prime example: Novell. When you’re at $1 billion and you’re not growing super fast in the software market, it’s time to sell.
8. Nearly $7 Billion: Oracle’s offer for BEA is generous. BEA disagrees and hopes other companies place bids to drive up the takeover price. Read the rest of this list to see why nobody may come to BEA’s rescue.
7. Don’t Wait for IBM: Sure, IBM could launch a white knight bid for BEA. And The VAR Guy has a ton of respect for IBM software guru Steve Mills. But Big Blue has never really been a “Silicon Valley” type software company. Both Oracle and BEA fit the the Silicon Valley mold.
6. SAP: Too distracted with the Business Objects buyout to make a play for BEA.
5. Microsoft: Generally doesn’t acquire software companies that have extensive code on Unix and Linux. Yes, Microsoft connects to Linux these days. But remember: The vast majority of Microsoft’s applications remain only available for Windows.
4. Hewlett-Packard: Actually, HP would make a great buyer for BEA. But that would force HP to upset Oracle — its closest database partner other than Microsoft.
3. Location, Location, Location: BEA and Oracle are located 24 miles from each other. Close enough for Oracle CEO Larry Ellison to bark instructions to his lieutenants at BEA headquarters, but far enough away for BEA to get some work done.
2. Partners Win: One of Oracle’s top channel executives, Rauline Ochs, built BEA’s channel programs a few years back. This should give BEA and Oracle customers/partners piece of mind if/when the two companies come together.
1. Man on a Mission: Oracle President Charles Phillips is driving the takeover bid. Smart move. Things tend to get emotional when CEO Larry Ellison gets out in front of the press. Let Phillips move the pieces into place, Larry, and this could be another winning move for Oracle
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