The paper will firstly deal with the impact of this merger on the shareholders of each of the companies. The paper will also provide a brief overview of how the financial condition of both the companies has improved post the merger. The paper will further deal with how the two companies together prove to be more profitable than each of them individually and how the companies prove to be more successful.
The merger of the two companies has proven to be very helpful and beneficial to the shareholders of both the companies. Issues that have been prevalent in the organizations individually are now being treated and improved. These improvements simply mean more sales and higher revenue which in turn simply means that the shareholders earn more. The businesses provide the shareholders with a high return and together the two companies are able to beat the tough competition that they faced from companies like Microsoft. Hence with the increased availability of resources and a combination of excellent products, the company will be able to generate higher revenues thereby providing the shareholders with better results and returns.
In a presentation by Sun, the company has listed out a few of the benefits for the companies individually as well as in a partnership. The report stated that for the Sun customers, ‘Oracle plans to protect, extend and enhance customers’ investments after closing’ (Sun). The company also expects that there will be higher investments and innovation in the research and development and also extended value for better and more rounded off products. Also the Sun customers will be able to use the global systems and services of Oracle. In the case of the oracle customers, ‘Reduces integration costs while improving performance, reliability and security of the system’ (Sun). The customers would also gain a complete and integrated line of standards based products as