Oracle says Justice Dept allows $7.4B Sun deal

Aug 20, 2009 By JORDAN ROBERTSON , AP Technology Writer

(AP) -- Business software maker Oracle Corp. said Thursday it has received the Justice Department's approval to move forward with its $7.4 billion acquisition of former dot-com-era star Sun Microsystems Inc.

The deal still needs the go-ahead from the European Commission.

Clearance by the Justice Department had been held up over questions about the licensing of Java, a programming language that Sun invented that now runs on more than 7 billion around the world, including cell phones and personal computers.

Another potential antitrust question could surround Sun's MySQL database, an open-source product. Some technologists worry could make MySQL a lower priority as it tries to boost sales of its market-leading database software.

Sun's performance had been shaky for nearly a decade before Oracle outbid IBM Corp. for the Santa Clara, Calif.-based company in April. IBM is one of Oracle's biggest database software rivals, and is a major Sun rival in computer servers.

The Sun acquisition will give Oracle more control over the development of Java, a key technology used in its products, and also thrust the Redwood Shores, Calif.-based company into hardware, a new area for Oracle.

The Justice Department's approval was largely expected. Even so, Sun shares rose 9 cents to $9.36 in after-hours trading, moving closer to the $9.50 per share that Oracle plans to pay for Sun. That indicates investors now see less chance of the deal being scuttled.

Oracle's stock rose 17 cents to $22.11 in after-hours trading, having finished the regular trading session up 16 cents to close at $21.94.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Sony forecasts $2B loss as smartphones lag (Update)

add to favorites email to friend print save as pdf

Related Stories

Software giant Oracle buys Java whizz Sun

Apr 20, 2009

Business software giant Oracle announced Monday it was buying Sun Microsystems and its Java programming language for 7.4 billion dollars after IBM abandoned its bid for the struggling tech company.

Oracle tops forecasts despite sales, profit dip

Jun 23, 2009

(AP) -- Software maker Oracle Corp.'s results topped Wall Street's forecast for the latest quarter Tuesday, despite a 5 percent drop in sales and a 7 percent decline in profit.

As Oracle readies takeover, Sun's loss widens

Apr 28, 2009

(AP) -- Sun Microsystems Inc.'s loss ballooned in the latest quarter as restructuring charges and a 20 percent drop in sales compounded the financial woes Oracle Corp. is set to inherit by acquiring Sun for ...

Rivals taking advantage of delay in Oracle-Sun merger

Aug 07, 2009

As antitrust regulators continue to scrutinize the year's biggest tech deal, Oracle's planned $7.4 billion purchase of Sun Microsystems, competitors in the high-end hardware business and open-source software market have wasted ...

Sun Micro: We may have broken US anti-bribery law

May 08, 2009

(AP) -- Sun Microsystems Inc. may have broken anti-bribery laws with its actions in an unspecified location outside the United States, a revelation that would-be acquirer Oracle Corp. knew about before inking ...

Prepping for Oracle, Sun predicts weak results

Jul 14, 2009

(AP) -- Sun Microsystems Inc. projected quarterly results below Wall Street estimates Tuesday, signaling it will clear some charges off its books ahead of its $7.4 billion acquisition by Oracle Corp.

Recommended for you

Sony forecasts $2B loss as smartphones lag (Update)

14 hours ago

Sony expects its annual loss to swell to $2 billion and has canceled dividends for the first time in more than half a century after writing down the value of its troubled smartphone business.

Alibaba post-IPO structure gives insiders control

14 hours ago

Control over Alibaba Group will stay in the hands of founder Jack Ma and other company veterans after the Chinese e-commerce giant goes public on the New York Stock Exchange in a record busting share sale.

User comments : 0