Why CIOs Should Care about M&A
"Oracle [is] in a small club of cash-rich companies bargain-hunting amid the worst economy in a generation. It's a buyer's market: As traditional sources of investment and cash get scarcer -- including, of course, paying customers -- even some companies with high-quality products have turned into desperate sellers."
So reports the WSJ's Ben Worthen, who also mentions Cisco and Microsoft as potential acquirers.
As we predicted last year, tough times are clearing the field for big companies. "Corporations have the upper hand--they're not bidding against private equity, and no one's going public," says Brenon Daly, a financial analyst with the 451 Group. "They're going to push to do deals."
Or as one guy who sold his company to Oracle says in the WSJ piece, the hungry software giant "is the new IPO."
Intersting, but also relevant to the CIO. As we said a while back, in an article on M&A activity in the software business, a takeover "presents enterprise software customers with both good news and bad--and makes planning for those disconcerting events a critical part of the corporate technology executive's job."
New owners could mean changes in products and services, or just a new attitude. One more thing to consider when making a purchase decision.