The recently released documents reveal that Oracle was only interested in buying Sun software assets, just a few weeks before the completion of the $ 7 billion acquisition.
Oracle chief Larry Ellison has spent the past two weeks protesting what his company sees Sound hardware as a strategic asset and will not sell the hardware business after the merger is completed.
In any case, Sun’s transfer to the US Securities and Exchange Commission at fusion he paints a very different picture.
Reveals that in March, Oracle was only interested in Sun software. «On March 12, 2009, Oracle sent a letter to our board of directors proposing that Oracle acquire software assets, a minority investment by Oracle in our common stock and the establishment of certain strategic relationships.»
The filing also indicates that Oracle and an anonymous «Party B» subsequently investigated a joint acquisition, suggesting that Oracle may have had an aligned partner to take over the hardware. «On April 6, 2009, our board met to discuss certain inquiries we received from Oracle and Part B and the impact on our company and employees, customers and other business partners of media reports suggesting that we are seeking a strategic transaction. ”the presentation says.
«After that, our management and advisers resumed talks with Oracle and Party B on a possible transaction. Party B resumed the company’s due diligence investigation on April 9, 2009. «
The presentation presents a rather depressing picture of Sun’s business, and the company acknowledged that it was in a serious decline.
«Sun’s revenues deteriorated as a result of lower IT spending during the current economic crisis,» the document said. «This industry-wide recession has hit Sun hard, as Sun gets a significant share of its revenue from the financial sector, which has been hit hard by the current economic environment.»
«Compared to some of its competitors, Sun’s revenue base is concentrated in a smaller number of larger customers, whose low costs were not adequately offset by acquiring new customers or entering adjacent markets.» he adds.
It also states that «Sun is less diverse than some of its peers and has a smaller portfolio of companies to help offset declines in a particular industry or product segment.»