Oracle Will Likely Get Approval to Buy Sun for $7.4 billion

September 3, 2009, By Atul Roach

What could be one of the mergers of the year, the Oracle Corp. and Sun Microsystems Inc. deal still hangs in the balance as the European Commission is reviewing the takeover. If the deal is approved, Oracle Corp. which is the second biggest software maker in the world, will take over Sun Microsystems Inc. in a $7.4 billion acquisition.

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As far as the scrutiny is concerned, the thing that is being carefully assessed is whether Oracle will use Sun’s proprietary MySQL-the most popular open source database in the world.

If the Commission feels that Oracle will take away the competition by aqcuiring rights to MySQL, the deal may get clouded but since it is a free source and very less money is generated by it in Europe, it is not likely to be a hindrance.

Another aspect undergoing close scrutiny is Sun’s licensing of Java software- which is used by more than 6 million developers to create applications. If the Commission has doubts that Oracle will regulate the use of Java, it might again pose a threat to the deal but then, the regulators will have to substantiate these doubts with valid reasons as to why Oracle will undergo acts favoring the company on a personal level. [via: Bloomberg]

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