Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (10178)	6/18/2003 9:47:09 AM
From: RMP	Respond to of 95530

OT: Re:PSFT & ORCL From Michael Murphy's newsletter. Oracle does not intend to integrate the products, but rather to support currently installed PSFT software, while selling only Oracle wares to new clients and incorporating the best features and functionality of PSFT into ORCL's products over time. I see the biggest risk as that of alienating existing maintenance paying customers thereby diluting one of the biggest assets (maintenance revenue stream) that was acquired. However, about 70% of PeopleSoft's customers recently upgraded and are unlikely to make another change anytime soon. Therefore, though I do not think the merger integration will be easy, it's a good deal for ORCL, especially at $16 a share (though I think if the deal gets done it would be for a price north of $20). Oracle is trying to buy one of its largest competitors, with an annual maintenance revenue stream of $800 million to $900 million, cash and cash equivalents estimated at around $1.8 billion currently, with almost no debt and lots of opportunities to eliminate redundant costs. I also think Oracle is trying to increase its customer base in order to have a bigger potential pool of clients for whom it can host/outsource services