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Sun Micro losing $100 mn a month on EU probe in Oracle bid

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Press Trust of India London
Last Updated : Jan 20 2013 | 12:09 AM IST

Software major Oracle has said Sun Microsystems is losing $100 million a month, while the European regulators are continuing their investigation into the software major's proposed $7.4 billion acquisition of the hardware firm, a media report says.     

Attributing to Oracle Chief Executive Larry Ellison the Financial Times said Sun Microsystems was losing $100 million a month, while European regulators scrutinise Oracle's acquisition plan for the hardware supplier.     

"The longer this takes, the more money Sun is going to lose, and that's not good for anybody," the report quoted Ellison as saying.     

Oracle made a $7.4 billion bid for Sun in April, following break-up of talks between Sun and IBM. US regulators approved the deal in August, but in September Brussels said it was scrutinising the deal. 

The anti-trust regulator has initiated an in-depth investigation into Oracle's proposed $7.4 billion acquisition of Sun Microsystems, citing concerns that the deal could restrict competition in the market for databases.     

They are examining whether Oracle's control over MySQL, an open-source Sun product, would stymie competition in the database software industry.       

Ellison expressed frustration over the delay, but said he was confident the Sun deal would be approved, FT said.

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The report quoted Ellison as saying, "The US took their time and deliberations and cleared it. They said it was overwhelmingly a pro-competitive deal, the Europeans have to do their, job, but I think once they do their job, they'll come to the same conclusion."      

According to the publication, Ellison made his comments during a interview hosted by the Churchill Club, a prominent Silicon Valley forum. During the discussion, he also laid out his vision for a new generation of integrated computer systems.      

"We believe in this model where we deliver complete computers systems," he said.      

Ellison said he would keep every part of the company, including Sun's data storage lines.      

"We think by combining our hardware with our software, we can deliver products that can be the backbone of most enterprises in America," he said.

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First Published: Sep 22 2009 | 5:46 PM IST

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