This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Google Can't Afford Not to Pay Off Oracle - Outrage

Stocks in this article: GOOGORCLAAPL

NEW YORK ( TheStreet) - Oracle (ORCL) has Google (GOOG) by the nose. The Java dispute, while somewhat downplayed in the media, is a huge threat to Android.

While Google's patent battles with Apple (AAPL) over similarities between Android devices and the iPhone are getting all the attention, Oracle's shakedown should be taken more seriously.

I guess everyone just figures it will eventually be resolved since the battle with Oracle is just business; it's not personal like the fight with Apple. For now, at least, that may be true. But I wouldn't want to get on the bad side of Oracle CEO Larry Ellison.

Oracle originally sought $6 billion from Google. It may be only a coincidence, but that happens to be just enough to cover the cost of buying Sun Microsystems plus a little more (based on the $5.6 billion price tag net of Sun's cash and debt).

While Ellison was delusional to think he could wring that much out of Google - and the judge in the case ultimately said he wouldn't allow that kind of gold digging -- Google CEO Larry Page needs to get some quick lessons in accounting if he thinks he'll be able to buy his way out this jam for less than the $100 million amount that keeps popping up.

At the moment, it's just a question of how many zeroes should go at the end of the check Google will write.

Page should be careful to avoid letting this turn into a feud with Ellison, who is a take-no-prisoners kind of competitor as we've seen with his assault on HP (HPQ).

The bottom line for Page, who's only been in the CEO role since January, is that he shouldn't try to play hardball with Ellison.

Just pay the debt and no one gets hurt.

--Written by Glenn Hall in New York. For more Outrage, check out the Today's Outrage blog or follow me on Twitter @GlennHall

Today's Outrage

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs