Case Study: PeopleSoft's Crisis Communication Response to the Oracle Takeover Bid (Part 2: Bringing in the Allies)

Note: Just last week, PeopleSoft announced its decision to replace CEO Craig Conway with the company's founder and original CEO, Dave Duffield. This move will likely ease the way for Oracle to acquire PeopleSoft, perhaps resulting in a more smooth transition and a better outcome for PeopleSoft stakeholders.

This case illustrates the power of a coordinated PR response to a crisis situation. It's clear that PeopleSoft's communications plan generated goodwill and strengthened its position in the marketplace.

With the stage set and the battle lines drawn, PeopleSoft set out to deliver its message in a variety of voices. The company used a wide range of customer testimonials, the news media and even the government to restate its key points and to keep them in play in the media. This strategy effectively positioned PeopleSoft in a positive way, simultaneously depicting Oracle negatively.

For background, see Part 1  of this case study.

Situation Summary

In the year following the initial takeover attempt, Oracle made two more offers in an attempt to take over PeopleSoft; both of them were rejected by PeopleSoft's board of directors. In spring 2004, the Department of Justice filed an anti-trust suit against Oracle, joined by 10 states' attorneys general.

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Abigail James is a marketing consultant and freelance writer for the financial services industry; she is based in Baltimore.