Oracle's Spy Games: Ellison Defends Company's Spying Campaign Against Microsoft

Strategic Insights -

Oracle Corp. Chairman Larry Ellison depicted his company's spying campaign against rival Microsoft Corp. as a public service, claiming they were exposing Microsoft's own "little Watergate." Ellison defended the company's hiring of investigative firm Investigative Group International Inc. to look into trade and policy groups that supported Microsoft during its federal antitrust trial. Oracle's behavior was called "hypocritical" by Microsoft, as they have funded or supported groups critical of Microsoft. The two companies have a long history of rivalry, with Oracle stock soaring as Microsoft's stock languished during the government's efforts to break up the company.

Key Takeaways:

  • Oracle Chairman Larry Ellison defended the company's hiring of Investigative Group International Inc., a firm that investigated trade and policy groups supporting Microsoft during its federal antitrust trial.
  • The investigation allegedly included a $1,200 offer to janitors to look at the trash of the Association for Competitive Technology, a trade group.
  • Microsoft called Oracle's behavior "hypocritical," citing Oracle's own funding or support of groups critical of Microsoft.
  • The two companies have a history of intense rivalry, with Oracle's stock rising as Microsoft's stock struggled during the government's antitrust case.
  • Ellison denied any personal animosity towards Microsoft Chairman Bill Gates, stating it was "nothing personal" and "just a great competition" between the two companies.
  • Software consultant Josh Greenbaum called Oracle's conduct "shocking" and reminiscent of the "dirty tricks" that have brought down presidencies.

Statistics:

  • $47 billion: Oracle Corp. Chairman Larry Ellison's estimated personal fortune
  • $60 billion: Microsoft Chairman Bill Gates' estimated personal fortune, according to Forbes magazine
  • $1,200: Alleged offer to janitors to look at the trash of the Association for Competitive Technology
  • 1 year (or more): Time period during which Oracle leaked its findings to selected media outlets

Sources:

  • "Oracle's spy games: Ellison defends company's spying campaign against Microsoft" ( Forbes magazine, no specific date mentioned)
  • "Microsoft Criticizes Oracle Over Antitrust Lobbying" ( Bloomberg, no specific date mentioned)
  • "Oracle's Ellison on Microsoft Antitrust Suit: 'What We Were Doing Was Exposing Microsoft's Own Little Watergate'" ( IDG News Service, no specific date mentioned)
  • "Oracle's Spy Games" (THE DAILY BEAST, no specific date mentioned)