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------------------------------------------------------------------------ October 14th, 1997 / Afternoon Edition ------------------------------------------------------------------------ Special Report: The Apple Merger with Oracle [EXCLUSIVE] Just this weekend, Mac OS Rumors reported the possibility of Larry Ellison and Steve Jobs working on getting Oracle and Apple to merge. Most, including us, would consider the rumor to be a little too "out there" to consider. Well, yesterday, one of our sources, who personally knows several Apple executives, confirmed the rumor. Here is what we have learned so far:
Earlier this year, when Ellison made a public announcement he was thinking about acquiring Apple, he did so to see just how the Apple faithful and the general public would react to the possibility of turning Apple into a NC maker. It obviously didn't work, and Larry needed more investment capital than he was willing to commit at the time in order to make his bid. Since then, the NC project at Apple has gotten underway, but working on distinctly Mac NCs, not the type Oracle has been pushing. Essentially, Oracle would like to use Apple as a hardware manufacturing arm for the various NCs and its brand to promote them in schools. In addition, Rhapsody, if successful, could provide an excellent high-performance platform for its database server line and client development products. So, Steve Jobs and Larry Ellison are indeed quietly working on a detailed proposal, which they will make to Apple's board of directors on October 30th. The proposal may, or may not, include restructuring the two firms somewhat, giving far more autonomy to Apple's hardware divisions and software divisions. In fact, from what we have received, an earlier proposal included seperating the company into the following autonomous hardware divisions:
Power Macintosh Hardware Apple NCs Portables Peripherals and Imaging
Software too would be divided into specific product divisions, each with its own R&D work, as well as continued collective R&D in the company. Most non-essential software projects would end, and much of Oracle's high-end database software operations would remain independent. WebObjects may be integrated with Oracle products in some fashion, but this is one of those rumors we consider speculation. Newton may continue as-is, or broken up, adding the eMate product line to Apple's main portables division. The MessagePad would continue to be developed, although less emphasized, as an information solution for mobile professionals in several niche markets. Steve Jobs apparently feels that eMate would simply be better received in a mass-market, especially with the renewed onslaught from Windows CE HPCs. What is not clear is how Oracle would integrate its product divisions in the new company. In fact, however, they may not even be combined. By allowing division autonomy, Oracle could be the firm's enterprise software group, continuing with its software work and adding a large professional services unit. Much of these details are very sketchy, based on older information about a possible Oracle/Apple merger, and some are unconfirmed. We welcome any and all information on this issue, anonymously and otherwise, via email. |