Sun hemorrhaging over US$100m a month

By Rachael Singh on Sep 28, 2009 8:14 AM
Filed under Finance

Software vendor could lose over half a billion dollars.

Sun Microsystems is "losing over US$100m (£61m) a month" according to Oracle chief executive Larry Ellison.

Ellison is urging the European Commission to speed up its decision on Oracle's acquisition of Sun - as the company continues to lose millions of dollars.

"The longer this takes, the more money Sun is going to lose, and that's not good for anybody," said Ellison, at a US technology forum in Silicon Valley earlier this week.

The software and database company is currently awaiting confirmation from the European Commission that a planned merger with Oracle can go ahead without violating anti-competitive rules.

However Sun is hemorrhaging money with the company losing US$147m in the last month alone while it waits, Computing reported.

The EC is expected to give its verdict in January which could mean that Sun will lose half a billion dollars by then.

US anti-trust regulators have already approved the Oracle bid of US$7.4bn

Ellison is predicting the EC will approve the deal as Oracle sells to big corporation and government agencies, while many Sun programmes are downloaded for free and largely used for web-based functions.

However, European anti-trust regulators are concerned over what Oracle will do with Sun's enterprise software, MySQL. The technology is currently a competitor to Oracle's own enterprise database software. Critics believe Oracle could cut resources for MySQL users and try to convert them to Oracle systems, thereby reducing competition in that sector.

Oracle bid for Sun Microsystems

 
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