Spinning the Oracle/Hyperion Deal

Loraine Lawson

The media's reaction to Oracle's acquisition of Hyperion demonstrates once again that booty is in the eye of the beholder. Oracle paid a 21 percent premium over the stock's closing price on the day of the announcement. Was it worth it? And what does this mean for the rest of the BI marketplace?

 

According to ZDNet blogger Dana Gardner, the deal is a good fit, and the result could be "the ultimate business dashboard." Gardner also argues that Oracle has a fairly good track record integrating acquisitions into its portfolio. (Some CIOs would probably disagree.)

 

BI pureplays, while not praising Oracle, did put a positive spin on the acquisition. For starters, the buy removes one of their competitors. And in its new environment, Hyperion will have to worry about a lot of new factors, such as integration into Oracle Fusion, making the company less agile in responding to market needs.

 

What's almost certain is that the acquisition feeding frenzy won't end here. Why? For starters, BI is a $50 million market with a growth rate in the low teens.

 

Meanwhile, Hyperion customers are left pondering whether the deal is about what's good for them or what's good for Oracle. Of course, there's no way to know, but they can take heart from the recent PeopleSoft acquisition, where Oracle seems to be keeping its promises.



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