Oracle Sun Merger Wins EU Approval - InformationWeek
Government // Enterprise Architecture
08:18 AM
Building Security for the IoT
Nov 09, 2017
In this webcast, experts discuss the most effective approaches to securing Internet-enabled system ...Read More>>

Oracle Sun Merger Wins EU Approval

Larry Ellison's company says it now expects to close the deal shortly on heels of nod from the Continent's competition watchdogs.

Oracle moved closer to sealing its $7.4 billion acquisition of Sun Microsystems Thursday, as the European Union's antitrust body formally signed off on the deal following a three-month investigation into its impact on competition in the IT sector.

"I am now satisfied that competition and innovation will be preserved on all the markets concerned," said EU competition commissioner Neelie Kroes, in a statement. "Oracle's acquisition of Sun has the potential to revitalize important assets and create new and innovative products," said Kroes.

The merger still needs approval from regulators in Russia and China, but Oracle said it expects "unconditional approval" from those countries and that it "intends to close the transaction shortly."

Among other things, Kroes said the EU's probe looked at whether the deal would hurt competition in the database market. Through its buyout of Sun, Oracle gains control of the world's most widely-used open source database—MySQL.

"The Commission's in-depth investigation showed that although MySQL and Oracle compete in certain parts of the database market, they are not close competitors in others, such as the high-end segment," the EU said in a statement.

The European Commission, the EU's antitrust body, said it also found that the open source PostgreSQL database represents a legitimate, independent alternative to MySQL. It also determined that the merger wouldn't scotch users' access to Sun's Java development platform.

Oracle executives have said the acquisition of Sun would allow their company to offer a complete portfolio of products and services and help spare customers the frustration of having to build business IT systems from piece parts.

Perhaps in response, Microsoft and Hewlett-Packard struck a similar chord last week when they announced a broad, three-year alliance under which they plan to spend $250 million to integrate Microsoft software with HP's datacenter hardware.

For its part, Sun's proprietary hardware business had all but dried up in the face of competition from commodity players like Intel and Dell, and it struggled to keep pace with larger players in the software business, such as IBM, Microsoft, and Oracle itself.

Yet the company retained key, widely-used assets, including the Solaris operating system, MySQL--which boasts more than 11 million installations—and the Java programming language, a standard for Web application development.

Oracle shares were up .56%, to $25.20, in premarket trading Thursday.

Attend our virtual event on modernizing IT governance, risk, and compliance to accelerate flexibility and visibility. It happens Feb. 10. Find out more (registration required).

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll