Tuesday, November 10, 2009
Morgan Stanley to EU: Whatever Larry Wants, Larry Gets, and Sun Is No Exception
For Oracle, whose acquisition of Peoplesoft and Siebel Systems cleared in Europe without conditions, news that the European Commission issued formal objections to its purchase of Sun was likely particularly galling. According to Oracle CEO Larry Ellison, Sun is already losing $100 million a month as it waits for regulatory approval, and judging from the price of the company’s stock today, it may be losing even more.
Is there any possibility that Oracle would abandon its bid for Sun? And if Oracle were to walk away, what would happen to Sun? Thomas Weisel Partners analyst Doug Reid weighs both of these questions in a note to investors today, and his answers are worth considering in light of reports that the European Commission may object to the deal. 
Electronic Arts is betting big on social gaming. This morning, the videogame publisher said it will acquire social network games maker Playfish for $400 million. An interesting move given that the company’s leadership dismissed rumors of such a deal just last month.
The fight for Skype has ended. After weeks of nasty legal sparring, the Internet telephony service’s founders agreed to join the investor group purchasing it from EBay and dropped the lawsuit that had threatened to bollocks the deal. 
Apple has a lot to gain by ending iPhone carrier exclusivity in the U.S. and signing up Verizon as a second carrier partner. According to Broadpoint AmTech analyst Brian Marshall, the company may do just that in the second half of 2010.
Microsoft may have gotten the jump on Google when its Bing search engine became the first to allow users to search Twitter in real time, but that victory is largely an empty one. Because while being first is generating quite a bit of attention for Bing–which is, for once, leading search innovation instead of following Google’s–that’s about all it’s good for now.
Though Verizon’s new Droid ad campaign might seem to preclude one, Apple would be wise to ink an iPhone distribution deal with the carrier–if not to hasten iPhone adoption, then to slow rivals that would supplant it. That’s the argument put forth by Piper Jaffray analyst Chris Larsen in a research note to investors Monday.
Dell’s acquisition of Perot Systems, the largest in the company’s history, is the first of many such deals, not a simple one-off. In an interview with Bloomberg, company CEO Michael Dell said the PC maker is eyeing more acquisitions as it looks to bolster sales to corporate clients. 
The last time Microsoft was featured in an episode of “Family Guy,” it was the butt of Zune joke. Peter Griffin’s father-in-law asked Bill Gates to help him program his Zune and then taunted the Microsoft chairman, noting that he owns an iPod “like the rest of the world.” This time it’s going to be different. That’s because Microsoft is paying to make it so. The company has teamed up with Fox to sponsor a “Family Guy” special built around Windows 7.
Oracle may be mulling acquisitions, but Brocade isn’t one of them. At the company’s annual shareholder meeting today, CEO Larry Ellison dismissed recent speculation that he might attempt to to acquire Brocade.
