Anyone involved with MySQL knows that Oracle agreed to purchase Sun earlier this year. Unfortunately for Oracle things haven’t gone as well as they might have hoped. Earlier today it was announced by the EC (Europenan Commission) tasked with reviewing the merger that the EC is delaying approval of the merger and they would be performing an in depth investigation of Oracle’s role in managing the MySQL database.
Daniel Wall, lead legal counselor for Oracle, said in a prepared statement on June the 26th: “we were almost able to resolve everything before the Second Request deadline. All that’s left is one narrow issue about the way rights to Java are licensed that is never going to get in the way of the deal.”
I guess he was wrong.
Oracle has said publicly it wanted to close the purchase of Sun by the end of August which is the close of Oracle’s financial quarter. Since I am posting this on September the 3rd it can be confidently said they didn’t achive their goal.
In late July 62% of the Sun stockholders approved the Oracle acquisition of Sun at a stockholders’ meeting. While it was certainly a majority, I suspect that the involved parties wished the percentages where a bit higher. It appears that everyone is not the Oracle bandwagon. Even so, on August the 20th the DOJ approved the merger.
The last thing Oracle wants with the Sun purchase is a protracted legal battle similar to the PeopleSoft acquisition. This transition has already hurt Sun’s bottom line and talent is leaving Sun at an alarming pace. Of course the MySQL talent diaspora is well documented, but others are leaving as well. This includes the recently departed JRuby team who left to join Engine Yard. Despite what some companies might think, the most important part of any acquisition is the talent . .the people. I don’t have the time or space to turn this into a post on the employees, but I think it is a very valid concern.
This brings us to today. The only problem remaining is for the EU to approve the merger. The announced delay is because the commission wants to investigate the issue of MySQL competing with Oracle (the database server). I thought it would be helpful to outline the possible outcome of the EU commission’s review. Results of the is review are required to be released within 90 days working days (January the 19th, 2010).
This verdict has three possible outcomes:
1) approval with no changes
2) conditional approval with required changes.
3) Outright rejection
Those changes could be anything ranging from requiring a change in the license terms to spinning off of MySQL and associated products into a seperate subsidiary or even outright selling of MySQL and it’s assets.
If there are any changes required for approval, Oracle will essentially have to give in to any requirements. As a large multi-national company who sells something like 60% of its products/services outside the United States it is going to have to cooperate with this commission in the long run. Oracle might choose to fight it legally if it can but I think that the end result will be that Oracle will be making the necessary changes.
If you are affected by this decision it might be wise to take action and let the EC know what you think. If you have any concerns you should contact Neelie Kroes’ office in the EC.
PlanetMySQL Voting: Vote UP / Vote DOWN