[Note: The September 12th post on Oracle's takeover of Siebel is here.]
CRM vendor Siebel has been rocked by rumors since last Friday, when TheDeal.com reported that Oracle and Siebel were in takeover discussions. The number $5 billion has been mentioned, which would make it somewhat less than half of Oracle's purchase price for PeopleSoft, but still a major acquisition.
Siebel has long been the subject of takeover speculation for years, as it has had a more difficult time than other major vendors coming out of the technology recession of the early part of this decade. Such speculation got a boost last month, when CEO Michael Lawrie was abruptly replaced by board member George Sheehan, fueling the idea that the board would soon move to position the company to be sold. In addition, a group of dissident shareholders has been meeting and demanding that Siebel do something to boost its share price.
If Oracle buys Siebel, it will give Oracle the dominant position over SAP in the worldwide CRM marketplace, at least on paper. However, you have to wonder whether Oracle will be able to digest such an acquisition while PeopleSoft and Retek buyouts are still on its plate.
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