$9.3B Oracle-NetSuite Merger in Jeopardy

Oracle sets a final deadline for its offer after T. Rowe Price objects.

Mitch Wagner, Executive Editor, Light Reading

October 7, 2016

1 Min Read
$9.3B Oracle-NetSuite Merger in Jeopardy

Oracle is putting a final, no-kidding deadline on its $9.3 billion offer to acquire NetSuite, following opposition by T. Rowe Price.

In a statement Friday, Oracle Corp. (Nasdaq: ORCL) extended the deadline on its acquisition offer to Nov. 4 -- the final extension, Oracle says.

Oracle's announcement follows a letter opposing the merger filed a month ago by T. Rowe Price Associates, the largest unaffiliated shareholders of NetSuite. The letter, filed by NetSuite to regulators Sept. 7, states that T. Rowe Price believes NetSuite has strong growth potential, and that Oracle has "inherent conflicts of interest" with NetSuite.

Oracle said in July it entered into a "definitive agreement" to acquire NetSuite, which provides a cloud suite of software for managing business operations and customer relations, for $9.3 billion. Oracle Chairman Larry Ellison was an early investor in NetSuite and owned 39.7% of outstanding shares immediately prior to the announcement. (See our article, "Oracle Acquires NetSuite for $9.3B to Boost Cloud Apps" and Oracle's July statement, "Oracle Acquires NetSuite for $9.3B in Cloud Push.")

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About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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