PeopleSoft extends customer refund program

Still fighting off Oracle, the wolf at its gates, PeopleSoft renews a customer assurance program that could cost any acquiring firm more than $1 billion.

Dawn Kawamoto
Dawn Kawamoto Former Staff writer, CNET News
Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.
PeopleSoft has renewed its controversial customer assurance program through June 30, as it continues to fight off a hostile tender offer by Oracle, according to a filing with the Securities and Exchange Commission on Tuesday. Under the program, PeopleSoft customers will receive a refund of up to five times their software license fees if the company is acquired and the new buyer fails to continue offering product support for a designated time period after the contract is signed.

When PeopleSoft started the program last June, it described it as a means to reassure customers they would continued to receive support if the company were acquired. The program could trigger more than $1.56 billion in payments for any acquirer who does not offer continued product support. Investors and Oracle claim the program also acts as a deterrent for any potential acquirer, because it can possibly drive up the cost to acquire PeopleSoft.