When it comes to enterprise databases, the name Oracle (ORCL) is usually the first one that comes to mind. This is why it was inevitable that the company's proposed $7.4 billion purchase of Sun Microsystems (JAVA) would encounter headwinds from the antitrust authorities, especially the European Union due to the fact that Sun owns the open-source database system, MySQL.While Oracle can often use lots of bluster, the company is also a realist. And, it certainly wants to close its deal for Sun, which has been languishing because of the uncertainty.
So, Oracle has tossed out some olive branches to the EU. In fact, the share price of Sun is up 10% on the news.
Essentially, Oracle says it will take an un-Oracle-type approach to MySQL. For example, the open-source license will be available for future versions -- which means that anyone can download the software for free. Next, key details of the underlying code will be made available, which will make it easier for third-party development. There will also be continued investments in R&D to improve the offering as well as a customer advisory board. Oh, and there won't be any copyright lawsuits.
While these are somewhat restrictive, the plan is still a good result for Oracle. After all, one option was that the company would have to spin-off MySQL. This essentially would be giving away a solid asset, which still has lots of global growth opportunities.
Tom Taulli advises on business tax preparation and resolving tax problems. He is also the author of a variety of books, including the including The Complete M&A Handbook
. His website is at Taulli.com.
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