With Salesforce, Oracle Would Really Be Making The Big Bet On Cloud: FBR Capital Analyst

Shares of salesforce.com, inc. CRM skyrocketed to make an all time high on Wednesday on a report from Bloomberg that revealed the company has roped in financial advisers to find itself a buyer. While most people on Street consider Oracle Corporation ORCL to be the best match for Salesforce.com, Oracle hasn’t commented yet on whether it is interested or not.

Daniel Ives from FBR & Co FBRC was on CNBC recently to discuss how Oracle and salesforce.com combined would be a ‘golden combination’.

Oracle’s Big Bet

“We view Oracle front and centre for really a number of reasons,” Ives said. “And one, Oracle is desperate [when it goes to] the cloud to really make what I view is a game changing acquisition. Salesforce has been the gold standard here.”

“This would make a lot of logical sense strategically, financially and especially in terms of where Oracle needs to play on the cloud. They have been late to the game and with Salesforce, I mean that would really be them making the big bet on cloud.”

He continued, “It’s always been talked about [potential] Oracle and Salesforce and even though we could say Microsoft and IBM out there. This is the golden combination and it would be really cheered by the Street and it would really take Oracle into a different [sphere] in terms of cloud.”

Oracle Has The Capacity

On Oracle’s financial strength to be able to do a deal as big as this, Ives said, “They have capacity $45 billion in cash, $40 billion in debt, but they generate about $15 a year in cash. So, they definitely have the capacity to do a deal like this.”