Research Firm Sees a Possible Amazon-Oracle Merger
An Amazon-Oracle merger isn’t a far-fetched scenario, according to a recent post by research data firm Trefis on Nasdaq’s news site.
Under the headline, “Why Amazon-Oracle Merger is a Very Real Possibility,” the Trefis team wrote recently: “Oracle may be the “best acquisition Amazon could ever make.”
Oracle has a major presence in the Triangle with outposts in Morrisville and Durham.
Trefis analysis is based on Oracle’s standalone value, as well as its value as part of the combined entity with Amazon using Trefis’ predictive platform.
Among its cited pluses: Customers will get the security of Oracle’s Generation 2’s architecture and Amazon Web Services (AWS) customer service, “leading to a differentiated product versus competition.”
Bringing Oracle’s database on AWS could make the combination, Trefis said, “the de facto choice for startups and enterprises alike.
However, there’s a history of a rivalry between the two companies, tech stack combination considerations and anti-competitive concerns.
Plus, there’s also the sheer size of the deal to consider. Amazon’s AWS division stands at around $493 billion and Oracle at $250 billion.
“Amazon will have to cough up a significant premium to Oracle’s current market value in order to finalize the deal,” wrote Trefis.