Silicon Valley’s MaverickOracle CEO Larry Ellison is "unpredictable and buying HP and creating the largest tech company in the world would be a crowning jewel for the ‘maverick’ in Silicon Valley."
Familiar FacesFormer HP CEO and current Oracle co-president Mark Hurd understands HP’s business, staff and culture better than anyone, and would do a great job of running the company.
The Promise of the Integrated StackOracle wants to offer fully integrated solutions — a complete stack. An HP acquisition would help. Bernstein would expect Oracle to still spin off the HP business.
Follow the MoneySuch a deal would offer lots of opportunity for value creation, including cost synergies, improved operating performance, and portfolio divestments and spin outs, according to Bernstein.
Location, Location and LocationThe two companies’ headquarters are less than 15 miles apart, which would help with integration.
Follow the Money, Part IIThe deal would be financially attractive for Oracle, according to Bernstein, which is assuming a 50 percent premium and 25 percent/75 percent cash/stock financing structure.
Follow the Money, Part IIISuch a deal would be significantly accretive to Oracle’s earnings — more than 50 cents a share at minimum.