November 10th, 2009
Is MySQL an "albatross" around the neck of Larry Ellison?
European regulators have held up the Oracle acquisition of Sun Microsystems because MySQL will give Oracle an unfair position in database markets.
Larry Ellison, CEO of Oracle has blamed the delay on large losses at Sun.
Therese Poletti, writing at MarketWatch, says that “Sun Micro’s folly is now Ellison’s albatross.”
“MySQL, which Sun described in its fiscal 2009 annual report as “not material,” is a big thorn in Oracle Corp.’s side.
Should Mr Ellison sell MySQL so that the deal can go through? He has said that he won’t. And the losses at Sun will keep growing and competitors will continue to take advantage of market uncertainty over Sun.
Is MySQL worth keeping?
Heath Winter, an analyst with Think20/20 Research believes that MySQL may not be worth the fight.
“It does seem like a lot to go through for something that does not pay off very well,” Winter said. While Sun does not disclose MySQL’s revenue, Winter estimated its annual revenue at about $300 million. It could be even lower. At the time of the merger in January, 2008, MySQL’s 2007 revenue was $50 million.
Tom Foremski reports on the business and culture of Silicon Valley at the intersection of technology and media. He also writes at Silicon Valley Watcher. See his full profile and disclosure of his industry affiliations.
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