Apple News, Analysis and Podcasts

Is Oracle setting its acquisition sites on Dell? That's the idea posed by Seeking Alpha's Omega Investor. Before HP announced the divestment of their PC division, this would have seemed like a ridiclous notion, but not any more.

But would an Oracle acquisiton of Dell be fiscally possible? Dell's market cap sits at $26 billion, with $15 billion in cash. But Dell's numbers quickly wash away with a debt line of $92 billion. Oracle has a $136 billion market cap, with $28 billion in cash and $39 billion in debt. Financially, Oracle has the means to scoop up Dell should they choose to go that path.

HP is moving directly into IBM's playground in order to focus on high margin solutions, but perhaps Oracle could make a play the oposite direction, leveraging PC's the way IBM and HP no longer have to offer.

Dell becomes an even more attractive aquisition target when looking at all the softare data storage companies they've acquired over the past three-years. Oracle could easily fold these resources into their business divisions, while leveraging the PC business as an added incentive. Of course, Apple wouldn't be too sad to see another prominate brand name PC business transition towards "bigger and better" things...

2 Comments

1. Scarborough Michael ~ September 9, 2011 17:22
   Let's hope Oracle buys Dell, shuts it down, and gives the money back to the investors. Perhaps that was the only good idea Dell had particularly when applied to itself.
2. John Dingler, artist ~ September 9, 2011 22:42
   Steve Jobs's Apple Macintoshes competing for customers with Larry Ellison's Windows PCs? Because Ellison is Job's close friend, this would be deliciously complex in view of the patent war surrounding Dell's and Android's theft of Apple's intellectual properties in the areas of design, and look and feel.

Leave your reply