Oracle Corporation (NYSE:ORCL) wanted to acquire data analytics firm Palantir Technologies in 2016 according an investor known as Marc Abramowitz.
Abramowitz revealed that Oracle founder Larry Ellison met up with Palantir chairman Peter Thiel to discuss the potential acquisition. The investor revealed the information during a court hearing in his lawsuit against Palantir for denying him the right to sell his stake. During the court testimony, Abramowitz stated that he knew about the acquisition talks because he arranged the meeting together with former Walt Disney Co (NYSE:DIS) executive Michael Ovitz. They were to help the two firms to formulate the deal but it never went through.
‘‘The idea was to make an introduction to see if Oracle would pursue an acquisition,’’ Abramowitz said during the court hearing.
Oracle has earned itself quite a reputation over the past few years with its acquisition portfolio. The software giant acquires both big and small firms and last year it parted with $9.5 billion to acquire NetSuite Inc (NYSE:N). Palantir would have been one of the major acquisitions for Oracle if it went through. This is because it was valued at about $20 billion it also acquired funding worth about $2 billion two years ago.
Abramowitz also revealed that Palantir had also received a $30 billion IPO pitch from Goldman Sachs Group Inc (NYSE:GS) IN 2015. The company’s chief executive Alex Karp announced in May that the firm is slated to launch an IPO. The investor has been giving the firm a lot of pressure as it considers whether to go public.
Karp revealed in January this year that Palantir has been generating a huge portion of its revenue from government contracts since it was founded in 2004. However, it widened its scope to commercial clients and companies that deal with consumer goods in 2016, thus opening doors for more revenue. Abramowitz’s lawsuit against the firm is the latest example of how start-up investors usually get frustrated with uneven laws regarding disclosure in private firms.
Oracle stock closed the latest trading session on Thursday at $50.20 after tanking by 1.32 percent compared to the value of the stock during the previous close.
