EC Threatens Oracles Sun Acquisition?
In other news involving Oracle, the Wall Street Journal reported Sept. 30 that
it saw documents stating that the European Commission, which is currently
performing due diligence on the company's proposed
$7.4 billion acquisition of Sun, may object to Oracle acquiring the
open-source MySQL database as part of the Sun deal.
The European Union is concerned that the merger will hinder competition in the enterprise database business. Oracle, with its acquisitions of PeopleSoft and Siebel, already owns nearly half of the enterprise parallel database market. IBM, with its DB2, comes in at around 22 percent. Microsoft SQL Server has about 19 percent, with Sybase, Teradata, Ingres and Sun's open-source MySQL making up most of the final 9 percent. Oracle would control more than half the market following the Sun acquisition, most analysts agree.
But Oracle is reluctant to give up Sun's MySQL database because it gives it a legitimate competitor to Microsoft's SQL Server, the market leader in the midrange IT segment.
The U.S. Department of Justice, the nation's antitrust law enforcer, sanctioned the Oracle-Sun deal on Aug. 20.
But the deal cannot proceed until the European Union makes its own decision. The commission has until Jan. 19 to rule on the takeover.
Meanwhile, Oracle CEO Larry Ellison said recently Sun is losing about $100 million per month-due largely to uncertainty among its customers about whether the deal will be completed.