EC Puts the Brakes on Oracle's Sun Acquisition
European antitrust regulators balk over the idea of Oracle snapping up MySQL.
The European Commission, the competition watchdog of the European Union, set a January 19, 2010 deadline for its decision, putting Oracle months behind its original plan for closing the deal.
In the meantime, Oracle has an action plan for Sun that it cannot put into motion, and Sun has no effective leadership to help defend its continued losses and defections of customers.
"It certainly kills the value of it," James Staten, senior analyst with Forrester, told InternetNews.com. "You just know that IBM, HP and Dell are frothing at the mouth. They've already stolen a significant chunk of their sales before the delay, now with this delay they are just going to go hog wild."
Sun declined to comment, while Oracle only issued a statement acknowledging the EC investigation.
All because of MySQL
Sun walked away from a possible merger with IBM in April because it feared a protracted antitrust investigation by the U.S. Department of Justice, since the two firms were both in the hardware business. The DoJ signed off on the Oracle/Sun deal on August 20.
Now, the problem all stems from MySQL, an open source database worth about $300 million to Sun. For a giant like Oracle, that's a small amount, but that's what the EC is focused on in its investigation. Read the rest at InternetNews.com.