The acquisition of Sun Microsystems (a computer hardware producer) by Oracle Corporation (a software firm) is an example of a (an) ____________________
A) vertical acquisition.
B) unrelated acquisition.
C) horizontal acquisition.
D) merger of equals.

Question

Quizplus · Accepted Answer

A vertical acquisition occurs when a company acquires a supplier or a distributor, which is either located upstream or downstream in the value chain. In this case, Oracle Corporation, a software manufacturer, acquired Sun Microsystems, a computer hardware producer. Since Sun Microsystems was a supplier for Oracle Corporation, it is a vertical acquisition.

The Acquisition of Sun Microsystems (A Computer Hardware Producer) by Oracle