backtop


Print

IBM and Sun Microsystems are reportedly in negotiations for a buyout

IBM is now in negotiations to purchase Sun Microsystems, as the struggling company tries to survive in a very turbulent global economy.  The Wall Street Journal has published details about the proposed deal.

IBM is reportedly willing to spend up to $6.5 billion in cash and stock for Sun, the WSJ said without naming sources.  If true, that's about double the closing price of Sun's stock last week -- a discount considering how Sun has struggled on the stock market for the past 12 months.

Both Sun and IBM sell computer systems that don't rely on the Microsoft Windows operating system or Intel's CPUs, and a possible buyout will strengthen IBM's product lines.  IBM currently rules the server market, and the buyout would help IBM strengthen its lead in the extremely competitive $53.1 billion market.

Recent talks of a possible buyout have led to Sun's stock on the European market to surge 61 percent, increasing from $2.28 per share up to $6.

Sun previously spoke with Hewlett-Packard regarding a possible merger, but talks promptly fell through.  If IBM is able to close the deal, the company will have a strong strategic advantage against its main competitor.

Sun Microsystems has struggled over the years while trying to get users to adopt its Solaris operating system.  Furthermore, Sun also found it very difficult to try and monetize software that it gives away for free, even when the company attempted to focus more on support.

IBM has proven it can properly monetize free software, and would be able to build on Sun's strong reliance on developing open source technologies.

The deal could be done as early as this week, or it could fall apart completely, negotiation insiders have warned.





"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov



Most Popular ArticlesThe Best 4K Monitors
July 15, 2017, 6:30 AM
HP 280 G2 MT Desktop PC
July 16, 2017, 6:47 AM
Dell XPS 27 – Large Screen PC AlO with High-End Performance
July 10, 2017, 7:22 AM
iPhone 8 – OLED Screen & 3D Laser Tech
July 14, 2017, 7:45 AM
Comparison: Rock64 vs Raspberry Pi 3
July 11, 2017, 6:53 AM

Latest Blog Posts






botimage
Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki