Oracle knows better than anyone that acquisitions are the way to go when a product range requires rapid expansion.
But large acquisitions, mergers, management buy-outs, and other structural changes consume significant management time, keeping them from the everyday activities required to reach revenue and earnings targets.
Given the effort required to acquire PeopleSoft, and its recent tussle with SAP for Retek, it is unsurprising that Oracle has announced decreased ovreall quarters earnings. In an ideal world, specialized M&A teams handle all aspects of acquisitions. In the real world, general management involvement is inevitable and substantial. A general rule in structural deals is to include the opportunity cost of the management time likely to be consumed. If the transaction still offers positive returns, then go for it. Otherwise, shelve it.
If you use Oracle product, then do you think that this Oracle newly found Acquisition spree is right?