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Report: IBM to Pay $7 Billion for Sun

By - Source: Tom's Hardware US | B 16 comments

Over the last couple of weeks, talk of Sun has centered around who the company is selling itself to, and for how much. While IBM is more than likely the answer to the first question, today brings a tentative answer to that second question.

Rumors that IBM was set to acquire Sun were what kicked this whole thing off in the first place. After that, there was reports that Sun was shopped around Silicon Valley before arriving at IBM’s doorstep. Then there was news that Sun was realigning itself and letting go a ton of employees, leading a lot of folk to believe it was trimming itself of any fat in order to appear more appealing to potential buyers.

The New York Times today reports that IBM is set to fork out 7 billion for its longtime rival. According to the NYT, which cites people familiar with the discussions (and not authorized to speak publicly, oops), IBM is offering $9.50 a share, down from a bid of $10 a share. Sources said the new agreement would restrict IBM’s ability to walk away from the deal.

Shares of IBM rose more than 3 percent on Thursday, to $100.82, and Sun’s shares rose more than 2 percent, to $8.21.

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  • 7 Hide
    Anonymous , April 3, 2009 12:46 PM
    I've just realized how ingenius that Sun logo is hehe.
  • 4 Hide
    4c1dr41n4 , April 3, 2009 1:10 PM
    Yeah, you can read Sun four times in that tilted square.
  • 0 Hide
    grieve , April 3, 2009 3:29 PM
    I never relised SUN was worth so much... 7 Billion! I was thinking they were more like 1 Bil.
  • 1 Hide
    Anonymous , April 3, 2009 3:31 PM
    MYSQL belonging to IBM????
  • 0 Hide
    igot1forya , April 3, 2009 5:52 PM
    What's next the Earth? IBM can single-handedly buy out GM and Chrysler too!
  • 1 Hide
    jhansonxi , April 3, 2009 7:09 PM
    Sun's server business is dying but their services are strong. IBM wants more influence on their related open source projects also. Sun's a bargain now compared to what it was worth two years ago.
  • 3 Hide
    jhansonxi , April 3, 2009 7:12 PM
    josheryMYSQL belonging to IBM????
    It will be interesting to see what they do with MySQL. They already have DB2 and Informix.
  • 0 Hide
    Greatwalrus , April 3, 2009 8:27 PM
    mmm, can't wait to download some IBM Java.

    :\ I hope they keep the name Sun.

    4c1dr41n4Yeah, you can read Sun four times in that tilted square.


    I never realized how amazingly awesome their logo is.
  • 1 Hide
    idisarmu , April 3, 2009 9:19 PM
    ...does this mean r.i.p. Openoffice? ...I hope that IBM makes openoffice better or at least doesn't start neglecting it or oppressing it.
  • 0 Hide
    Anonymous , April 3, 2009 9:31 PM
    I'd recommend everyone to at least download and save their (working) copy of SUN Java.
    You never know if IBM will start charging or perhaps creates something worse!
    I got my version safe and sound on my HD!
    And just in case IBM will do a better job for free, I'll switch over to IBM!
  • 0 Hide
    Greatwalrus , April 3, 2009 10:10 PM
    idisarmu...does this mean r.i.p. Openoffice? ...I hope that IBM makes openoffice better or at least doesn't start neglecting it or oppressing it.

    Man I hope not, that's a life saver for me.
  • -4 Hide
    tayb , April 3, 2009 11:42 PM
    idisarmu...does this mean r.i.p. Openoffice? ...I hope that IBM makes openoffice better or at least doesn't start neglecting it or oppressing it.


    Open Office was an awful idea from a business standpoint. Why the hell would you give away all that software with little to no advertising at all? If IBM keeps Open Office it most assuredly won't be the same as it used to be.

    I really could care less anyways because I get Office Enterprise for free but it is nice to HAVE open office for those situations where I am away from my computer.
  • 4 Hide
    Greatwalrus , April 4, 2009 7:06 AM
    taybOpen Office was an awful idea from a business standpoint. Why the hell would you give away all that software with little to no advertising at all? If IBM keeps Open Office it most assuredly won't be the same as it used to be.

    Umm, it's called Open Source Software?
  • 0 Hide
    amnotanoobie , April 5, 2009 2:21 PM
    taybWhy the hell would you give away all that software with little to no advertising at all? If IBM keeps Open Office it most assuredly won't be the same as it used to be.



    Hmmm, Sun and IBM are both quite active members in the Open Source community, I don't see why IBM would try to change it. It's a product that has proven stable and good enough for use for personal or enterprise purposes.

    Actually I think now IBM would peddle the thing more since it would bring more attention to Java, Sun and also IBM. (Since now IBM could attach their logo to it).
  • 0 Hide
    seboj , April 6, 2009 5:57 AM
    Fortunately, IBM seems to have withdrawn their bid for Sun (if you trust the press).

  • 0 Hide
    seboj , April 6, 2009 1:34 PM
    joeman42Unfortunately is more like it. If Sun collapses into nothingness their entire catalog of IP either vanishes along with it or worse, gets bought at auction by an SCO or Rambus like litigation house.You are letting your prejudice for IBM cloud your judgement. Even if IBM chooses not to advance Sun's wares they more than likely will provide some sort transition plan to those affected, which is far, far better than could be expected otherwise. At worse, benign neglect.


    Don't mistake me here, I love Big Blue. I would just rather see Sun acquired by someone on the other side of the street, so competition ergo innovation is not stifled. IBM + Sun is a lot of Unix under one roof. Antitrust wouldn't be far behind.