Sun Microsystems Losing $100 Million A Month Due to EU Investigations

Oracle’s chief executive Larry Ellison said Sun Microsystems is losing around $100 million per month, while European Commission is carrying on with its probe into the software company’s proposed $7.4 billion acquisition of the cash-strapped hardware firm, according to media sources.

The transaction has already been cleared by the US Justice Department back in August, and the deal is now being scrutinised by EU regulators for competition concerns.

Expressing his worries over the delay in getting approval for the proposed deal, Ellison said, “The longer this takes, the more money Sun [Microsystems] is going to lose, and that's not good for anybody”.

“The US took their time and deliberations and cleared it. The Europeans have to do their job, but I think once they do their job, they’ll come to the same conclusion”, he added.

Competition Commissioner Neelie Kroes has already started the second phase of the probe into the $7.4 billion acquisition earlier this month.

The EC is specifically concerned about the future of open source database MySQL, which could be seen as a potential rival to Oracle’s core business.

However, Ellison allayed such fears by saying that it wouldn’t be essential for Oracle to divest Sun MySQL database. He asserted that he sought Oracle to offer complete systems incorporating storage and hardware.

Our Comments

The acquisition of Sun Microsystems by Oracle came as a massive surprise to most of the observers. At the end of the day, it was a shock that Oracle paid so little for a company with such a wealthy past and portfolio. Oracle was never a hardware company, more services and software. As such, it will be interesting to find out what happens as Sun Microsystems is dismantled.

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