With the announcement of the European Commision’s further objections of the Oracle acquisition, Sun Microsystems Inc. (JAVA) shares fell even further. Sun Micro is losing $100 million a month, according to Oracle Chief Executive Larry Ellison, due to competitors snatching up market share as businesses worry about the company’s future.
Sun Micro’s revenue declines have outpaced those of its rivals, causing many to question the financial desirability of the deal from Oracle’s perspective.
Regulatory delays in Europe and the public disagreement between European and U.S. regulators—which already approved the deal—are adding a new political element into the litigious quarrelling over Sun’s MySQL database. While the U.S. Department of Justice says the merger is “unlikely to be anticompetitive”, the E.U. is afraid of Oracle’s potential monopoly of the database software market.
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