EU delay to approving Oracle buyout of Sun may force Oracle to drop the deal?

The ongoing delay by the EU to approve the Oracle buyout of Sun may have dire consequences, as it’s costing both Sun and Oracle money to continue operating in their current positions without being able to take any action to integrate the two companies and start to reduce costs. Speculation on this site is that Oracle may be forced to drop the deal if Sun’s stock price continues to drop, since at a point the value of the company stock will be below Oracle’s original buyout offer. At that point it wouldn’t make sense for Oracle to continue with the deal. What happens at that point may be disastrous for Sun if Oracle backs out of the deal, since Sun may not be able to continue alone viably at that point.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.