How Did Oracle Acquire Peopleoft

Examine the reasons that led Oracle, one of the world's leading software companies, acquire PeopleSoft.
There are several reasons that made Oracle to acquire PeopleSoft. First, Oracle wanted to acquire PeopleSoft so that they can become stronger in developing the products that the company had difficulties developing. It was already evident that PeopleSoft was already developing some products that had not match within the software market. For example, PeopleSoft had advanced customer relationship management (CRM) software that outshine that of Oracle. The market value of such high valued software was the weakness of Oracle. In relation to this, Oracle was desperate to acquire PeopleSoft in order to vertically integrate the company so that they can offer virtually any business software product and services to growing companies. Oracle wanted to be the sole supplier of enterprise software and thus the bid for PeopleSoft was consistent with their strategy. In simple terms, Oracle wanted to gain the market share to put to put
After the merger, both the Oracle and PeopleSoft share prices rose by 10%. One of such benefits is increased capital base of the new company. Before the merger, the revenues of Oracle ad PeopleSoft were $10.2 billion and 3 billion respectively. The merger of these two companies would enhance the revenue base of the new company. This made Oracle to gain an advantage in relation to market capitalization in relation to its competitors. In line with the objective of the merger, the size of these two businesses increased tremendously after the merger. The increased size of this business gave them the tremendous economies of scale and enhances their efficiencies. This made Oracle more tremendous and more efficient. In addition, it made the company made more profits and become more competitive in the light of increasing competition within the enterprise software