Phil Wainewright today asks whether NetSuite will become part of Oracle's M&A rampage or whether Larry (NetSuite's largest shareholder) will instead allow the company to come public, as many have expected.
Phil isn't alone in asking the question. I've asked it several times in the last few years. But the one thing neither Phil nor others [myself included] have considered is whether or not Evan Goldberg, Zach Nelson and the other NetSuite stakeholders have provisions against an Oracle takeover. While Ellison has a majority equity stake, that doesn't preclude the other founders from having some type of provision within the partnership documents that gives them leverage in any negotiations with Oracle.
Given the importance of SaaS and Oracle's willingness to embrace the maturation of the traditional perpetual license model; I can't see how NetSuite would be allowed to come public UNLESS there are provisions in place that preclude Ellison from forcing the issue.
- Netsuite Ponders IPO
- Reviewing the Next Big Things from Enterprise 2006
- Zach Nelson discusses future of SaaS
- NetSuite-ening the Pot?
- Private Company Spotlight: NetSuite
Note: At the time of this writing I, and/or funds I maintain discretionary control over, did not maintain a position, long or short, in ORCL.