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Oracle gets its way, finally

A year and a half of rancor, posturing and courtroom testimony comes to an end as PeopleSoft agrees to be acquired.

CNET News staff
4 min read

Related video


PeopleSoft today, 49ers tomorrow?
Larry Ellison, CEO, Oracle

A year and a half of rancor, posturing and courtroom testimony comes to an end as PeopleSoft agrees to be acquired.

Microsoft goes after PeopleSoft customers
An e-mail suggests PeopleSoft customers think about a technology shift in the face of Oracle's acquisition, CNET News.com has learned.
December 15, 2004

Mr. Phillips goes to Pleasanton
Oracle President Charles Phillips heads over to PeopleSoft's headquarters to sort out the companies' $10 billion merger.
December 14, 2004

PeopleSoft customers, employees weigh deal
Oracle may be celebrating its long-awaited union with PeopleSoft, but customers, employees and competitors have reason to worry.
December 14, 2004

Quick facts on the merger

Total value: Approximately $10.3 billion

Price per share: $26.50

Original per-share bid: $16

When the bid began: June 2003

Product plans: All-new PeopleSoft 9 and J.D. Edwards 6 due in 12 to 24 months. PeopleSoft 10 (combining technology from the merged firms) due in 30 to 36 months.

R&D spending: Cut by $150 million

Sales staff: Increase by 50 percent


How it unfolded

June 2003:
  • PeopleSoft announces friendly bid for J.D. Edwards. Four days later, Oracle launches hostile bid for PeopleSoft.
  • PeopleSoft's board makes its first rejection of an Oracle offer. Separately, it files a lawsuit to enjoin its rival's bid.
  • PeopleSoft offers its customers a money-back guarantee if Oracle succeeds.
  • Oracle raises its bid to $19.50 per share. As with the first offer, it is rejected.
    • July 2003:
  • Larry Ellison says he'll pursue the merger--even if it takes a year to get done.
  • Acquisition of J.D. Edwards gets antitrust OK.
    • August 2003:
  • Craig Conway, PeopleSoft's then CEO, says Oracle's bid is all but dead.
  • PeopleSoft acquires all remaining shares of J.D. Edwards.
    • September 2003:
  • Oracle says it won't raise its bid.
    • November 2003:
  • European regulators extend their review of Oracle's bid.
    • February 2004:
  • Oracle makes a "final" bid of $26 per share.
  • U.S. Justice Department files an antitrust lawsuit to block the merger.
    • May 2004:
  • Oracle drops its bid to $21 per share.
    • June 2004:
  • Antitrust trial begins. The big question in the case: How much competition is there in the business software market.
  • An early revelation in the trial: Microsoft and SAP had held merger talks of their own.
  • Also in testimony: Ellison says software makers BEA and Siebel are on his wish list, and another Oracle exec says Oracle and PeopleSoft had talked about a merger before the hostile bid.
    • September 2004:
  • Oracle wins in antitrust case as judge rules that competition will not be damaged by a merger.
  • PeopleSoft holds what may be its last customer conference.
    • October 2004:
  • Conway is fired as PeopleSoft CEO, to be replaced by founder Dave Duffield.
    • November 2004:
  • Oracle makes "best and final" offer of $24 per share.
  • Oracle wins PeopleSoft shareholder vote.
    • December 2004:
  • PeopleSoft agrees to be acquired for $26.50 per share.

    • Battle ends with a phone call
    A single phone call on Friday evening brought the long-running Oracle-PeopleSoft fight to a close.
    December 13, 2004

    Ellison talks about the acquisition
    Excerpts from the press conference announcing an agreement to acquire PeopleSoft.
    December 13, 2004

    Ellison's deja vu moment
    perspective CNET News.com's Charles Cooper explains why IBM's successful pursuit of Ray Ozzie and Lotus a decade ago offer valuable lessons for Larry Ellison.
    December 13, 2004

    Notable quotes: Hostile bid ignites the rhetoric
    Craig Conway's dog donned a bulletproof vest as the sniping between the Oracle and PeopleSoft crews heated up.
    December 13, 2004

    Oracle buys PeopleSoft for $10 billion
    Ending a bitter battle, PeopleSoft's board approves a deal that reshapes the business software landscape.
    December 13, 2004

    Ellison gets holiday gift after all
    Oracle's billionaire chief executive couldn't find anybody willing to sell him an NFL football in time for the holidays, but at least he got PeopleSoft.
    Photos: Ellison triumphs
    December 13, 2004

    Peace breaks out in Oracle courtroom
    It's a rare outburst of good cheer among the lawyers as the PeopleSoft deal renders a "poison pill" trial moot.
    December 13, 2004

    previous coverage

    On stage, Ellison sticks to familiar themes
    Oracle chief recycles speech from last year's show and pledges the company will treat PeopleSoft customers right.
    December 8, 2004

    Oracle confab brings out the naysayers
    roundup At OpenWorld in San Francisco, Dell execs bash "big iron," quibble about Red Hat and pooh-pooh IBM-Lenovo.
    December 8, 2004

    Does new PeopleSoft CEO signal a buyout?
    The ouster of Craig Conway and the return of Dave Duffield could be a prelude to PeopleSoft accepting Oracle's offer.
    October 1, 2004

    Oracle's day in court
    special coverage The battle raged for months and generated no shortage of press. Here are some of the key stories on the software maker's bid for PeopleSoft.
    September 20, 2004

    What ails Oracle?
    news analysis The company calls its slowdown in application sales a fluke. But others say it's a sign of bigger problems.
    September 17, 2004

    Eyes on enterprise
    special report Talks between SAP and Microsoft underscore the harsh realities in the enterprise software market.
    July 6, 2004

    Buying time
    special report Oracle's hostile bid is yet more evidence of the database giant's struggles to find a solid footing in the applications marketplace.
    June 12, 2003

    Related video


    PeopleSoft today, 49ers tomorrow?
    Larry Ellison, CEO, Oracle

    A year and a half of rancor, posturing and courtroom testimony comes to an end as PeopleSoft agrees to be acquired.

    Microsoft goes after PeopleSoft customers
    An e-mail suggests PeopleSoft customers think about a technology shift in the face of Oracle's acquisition, CNET News.com has learned.
    December 15, 2004

    Mr. Phillips goes to Pleasanton
    Oracle President Charles Phillips heads over to PeopleSoft's headquarters to sort out the companies' $10 billion merger.
    December 14, 2004

    PeopleSoft customers, employees weigh deal
    Oracle may be celebrating its long-awaited union with PeopleSoft, but customers, employees and competitors have reason to worry.
    December 14, 2004

    Quick facts on the merger

    Total value: Approximately $10.3 billion

    Price per share: $26.50

    Original per-share bid: $16

    When the bid began: June 2003

    Product plans: All-new PeopleSoft 9 and J.D. Edwards 6 due in 12 to 24 months. PeopleSoft 10 (combining technology from the merged firms) due in 30 to 36 months.

    R&D spending: Cut by $150 million

    Sales staff: Increase by 50 percent


    How it unfolded

    June 2003:
  • PeopleSoft announces friendly bid for J.D. Edwards. Four days later, Oracle launches hostile bid for PeopleSoft.
  • PeopleSoft's board makes its first rejection of an Oracle offer. Separately, it files a lawsuit to enjoin its rival's bid.
  • PeopleSoft offers its customers a money-back guarantee if Oracle succeeds.
  • Oracle raises its bid to $19.50 per share. As with the first offer, it is rejected.
    • July 2003:
  • Larry Ellison says he'll pursue the merger--even if it takes a year to get done.
  • Acquisition of J.D. Edwards gets antitrust OK.
    • August 2003:
  • Craig Conway, PeopleSoft's then CEO, says Oracle's bid is all but dead.
  • PeopleSoft acquires all remaining shares of J.D. Edwards.
    • September 2003:
  • Oracle says it won't raise its bid.
    • November 2003:
  • European regulators extend their review of Oracle's bid.
    • February 2004:
  • Oracle makes a "final" bid of $26 per share.
  • U.S. Justice Department files an antitrust lawsuit to block the merger.
    • May 2004:
  • Oracle drops its bid to $21 per share.
    • June 2004:
  • Antitrust trial begins. The big question in the case: How much competition is there in the business software market.
  • An early revelation in the trial: Microsoft and SAP had held merger talks of their own.
  • Also in testimony: Ellison says software makers BEA and Siebel are on his wish list, and another Oracle exec says Oracle and PeopleSoft had talked about a merger before the hostile bid.
    • September 2004:
  • Oracle wins in antitrust case as judge rules that competition will not be damaged by a merger.
  • PeopleSoft holds what may be its last customer conference.
    • October 2004:
  • Conway is fired as PeopleSoft CEO, to be replaced by founder Dave Duffield.
    • November 2004:
  • Oracle makes "best and final" offer of $24 per share.
  • Oracle wins PeopleSoft shareholder vote.
    • December 2004:
  • PeopleSoft agrees to be acquired for $26.50 per share.

    • Battle ends with a phone call
    A single phone call on Friday evening brought the long-running Oracle-PeopleSoft fight to a close.
    December 13, 2004

    Ellison talks about the acquisition
    Excerpts from the press conference announcing an agreement to acquire PeopleSoft.
    December 13, 2004

    Ellison's deja vu moment
    perspective CNET News.com's Charles Cooper explains why IBM's successful pursuit of Ray Ozzie and Lotus a decade ago offer valuable lessons for Larry Ellison.
    December 13, 2004

    Notable quotes: Hostile bid ignites the rhetoric
    Craig Conway's dog donned a bulletproof vest as the sniping between the Oracle and PeopleSoft crews heated up.
    December 13, 2004

    Oracle buys PeopleSoft for $10 billion
    Ending a bitter battle, PeopleSoft's board approves a deal that reshapes the business software landscape.
    December 13, 2004

    Ellison gets holiday gift after all
    Oracle's billionaire chief executive couldn't find anybody willing to sell him an NFL football in time for the holidays, but at least he got PeopleSoft.
    Photos: Ellison triumphs
    December 13, 2004

    Peace breaks out in Oracle courtroom
    It's a rare outburst of good cheer among the lawyers as the PeopleSoft deal renders a "poison pill" trial moot.
    December 13, 2004

    previous coverage

    On stage, Ellison sticks to familiar themes
    Oracle chief recycles speech from last year's show and pledges the company will treat PeopleSoft customers right.
    December 8, 2004

    Oracle confab brings out the naysayers
    roundup At OpenWorld in San Francisco, Dell execs bash "big iron," quibble about Red Hat and pooh-pooh IBM-Lenovo.
    December 8, 2004

    Does new PeopleSoft CEO signal a buyout?
    The ouster of Craig Conway and the return of Dave Duffield could be a prelude to PeopleSoft accepting Oracle's offer.
    October 1, 2004

    Oracle's day in court
    special coverage The battle raged for months and generated no shortage of press. Here are some of the key stories on the software maker's bid for PeopleSoft.
    September 20, 2004

    What ails Oracle?
    news analysis The company calls its slowdown in application sales a fluke. But others say it's a sign of bigger problems.
    September 17, 2004

    Eyes on enterprise
    special report Talks between SAP and Microsoft underscore the harsh realities in the enterprise software market.
    July 6, 2004

    Buying time
    special report Oracle's hostile bid is yet more evidence of the database giant's struggles to find a solid footing in the applications marketplace.
    June 12, 2003