Report: IBM in Talks to Buy Sun Microsystems

Several reports today say that IBM is in talks to purchase Sun Microsystems for a rumored $6.5 billion dollars.

According to Bloomberg, Sun shares today jumped at the news, going from $3.27 to $8.24 at 9:31 a.m. New York time in Nasdaq Stock Market trading. Earlier the stock surged as much as 69 percent, representing the most since Sun’s 1986 initial public offering. IBM declined $2.94 to $89.97 on the New York Stock Exchange.

So what would a merger like this mean? Acquiring Sun would obviously help IBM enlarge its lead in the server market. That aside, as analysts pointed out to the NYT, a combination of the two would bring together two technology companies that would collectively boast $9 billion a year in research and development funds. During times when everyone else is scrimping and saving, these two are investing in the future.

While IBM would not comment on the rumors about a deal, Sun’s chairman, Scott McNealy, told the NYT in a rather cryptic email, “As always, I don’t comment on rumors, no matter how accurate or silly they may be.” Hmmm.

Sources:
NYT
Bloomberg
Wall Street Journal

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Jane McEntegart is a writer, editor, and marketing communications professional with 17 years of experience in the technology industry. She has written about a wide range of technology topics, including smartphones, tablets, and game consoles. Her articles have been published in Tom's Guide, Tom's Hardware, MobileSyrup, and Edge Up.