Oracle to Buy Cloud Computing Firm for $1.5 Billion (ORCL)


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Enterprise software giant Oracle Corporation ( ORCL ) on Monday announced it would buy cloud computing firm RightNow Technologies Inc. ( RNOW ) for a total of $1.5 billion.

The $1.43 billion asking price totals some $1.5 billion when including RightNow's cash and debt.

Oracle will pay $43 per share for RNOW, representing a nearly 20% premium over the stock's Friday closing price of $35.96.

Oracle shares posted small losses in premarket trading Monday.

The Bottom Line
Shares of Oracle Corporation ( ORCL ) have a .75% dividend yield, based on Friday's closing stock price of $32.12. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.

Oracle Corporation ( ORCL ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks

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