IBM in talks to buy Sun: Report

IBM in talks to buy Sun: Report

Summary: IBM is in talks to buy Sun Microsystems in a transaction potentially valued at at least US$6.5 billion in cash, according to the Wall Street Journal.

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IBM is in talks to buy Sun Microsystems in a transaction potentially valued at at least US$6.5 billion in cash, according to the Wall Street Journal.

"In recent months, Sun has approached a number of large tech companies in the hopes of being acquired, say people familiar with the matter," the US-based newspaper reported online today, noting that while the talks were under way with IBM, a conclusive deal might not eventuate.

Any deal to acquire Sun Microsystems, which was founded in 1982 and remains one of the world's largest technology software and hardware manufacturers, would be one of the biggest deals ever in the global technology sector.

Sun has a strong Australian presence, however the company's Australian chief Duncan Bennet resigned in February after it was revealed in December that the company's annual Australian product revenues had fallen by almost $100 million for the year to 30 June 2008, caused mainly by an unusually large deal the year before with Telstra.

Topics: IBM, Oracle, Tech Industry

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5 comments
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  • Subject

    Yay.
    anonymous
  • Overdue

    This is overdue - Sun has been implementing one dumbass strategy after another - perhaps this will put Sun's technology to good use - instead of tilting at windmills...
    anonymous
  • I for one welcome our new Java overlords

    Although we all know the history, enough money can float any hard feelings away with the water (flowing) under the proverbial bridge.

    Microsoft should offer $10Billion or other such shock and awe value and secure all the Java technologies.

    I can just picture the terror filled emails flying at Sony as Redmond re-enters the HD Vid arena through the back door while fanboys convulse in their computer chairs :P

    Also, BD-J looks like the frontrunner for upcoming iTV products and of course there's all those phones and other Java gadgets ripe for licensing. Surely some coin can be turned in all that - it has to be more attractive than acquiring a mid life crisis ridden Yahoo (once the life of the party, now just late to it).

    Maybe we'll even see an OSX-esque rebirth for Windows: Win 9 built on Solaris, ready to run on your Winsparc ... OK, now I'm just being (really) silly.
    anonymous
  • SUN = Quality Free Products

    That might be true, but Sun has given alot away for free including the recent OpenSolaris. They might have been having issues with business strategy but they are loved for what they give away for free.
    anonymous
  • Enter the dragon

    Have worked for sun in Europe changing business strategy. Yes I would say management failure was under this decline. McNealey built up the company and failed to hand it over to professional managers earlier enough to spot the rot.The new guy is making headway with a new direction but needs time to make an impact.the board is dominated by American culture to think global.Hence when America is down so is Sun.They really do need new stronger management there is plenty of opportunities at Sun for talent at the top with radical thinking.
    anonymous