UPDATED: Oracle makes billion dollar swoop for RightNow Technologies
Oracle has announced that it has reached an agreement to acquire RightNow Technologies.
But Angela Eager of market research firm TechMarketView said the takeover was one that “fills you with dismay” and predicted the demise of the standalone Cloud pureplay as Oracle instigated a new shopping-spree with a list that includes HR, talent management and social networking.
She said: "Oracle’s intentions are pretty clear. Having announced its late entry in the Cloud with the Oracle Public Cloud at OpenWorld last month it is acquiring to build its Cloud portfolio. RightNow is the first, it won’t be the last…Having decided the cloud is a threat, Oracle is countering it by doing what it has become good at and buying its way into the market. The RightNow acquisition will also enable Oracle to issue a direct challenge to Salesforce.com and its Service Cloud, which has been an important growth driver and a good large enterprise access mechanism for the Cloud native. Salesforce.com will probably be facing stiffer native Cloud competition from now on.
But there may be some further twists and turns to this story ahead. In a surprise announcement on Wednesday (26 October) law firm Levi & Korsinsky revealed it was investigating the Board of RightNow for possible violations of state law in connection with the sale.
The investigation is said to focus on whether the Board breached their fiduciary duties to RightNow stockholders by selling up to Oracle without adequately shopping the company, thereby allowing Oracle to underpay for the RightNow share and harming the stockholders.
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Neil Davey is the managing editor of MyCustomer. An experienced business journalist and editor, Neil has worked on a variety of newspapers, magazines and websites over the past 15 years, including Internet Works, CXO magazine and Business Management. He joined Sift Media in 2007.