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.

In what would be the biggest acquisition in IBM’s history (currently the largest buyout was its acquisition of Cognos last year), the Wall Street Journal reports that the offer values Sun at close to double the company’s $4.97 share price at close yesterday. The Journal detailed (citing sources close to the matter) that the two are in talks and a deal may not come of it.

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.

Wall Street Journal

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  • jsloan
    the sun is setting.

    they should buy them, then fire them for pissing away of billions of investor's dollars.
  • Tindytim
    I wonder what that would mean about the feature of SPARC. With so much engineering talent all grouped together, I bet we'd see quite a few new processor technologies.
  • jsloan
    TindytimI wonder what that would mean about the feature of SPARC. With so much engineering talent all grouped together, I bet we'd see quite a few new processor technologies.

    sparc will be added to ibm's product line.

    if you go to ibm's website you see that is basically what they do when they aquire someone. basically it will be become ibm sparc.

    they will continue to support it while there is a market. they will continue to evolve it, develop it, ect...

    the bigger question is for solaris, ibm will want to have aix for sparc.

    big changes are in stored for java and netbeans. it will be ibm java and ibm netbeans. hopefully netbeans and eclipsed merged. so we will see an improved eclipse with mattisse visual editor

    ibm has a long history of commitment to it's hardware, software, applications and services it provides. with the fall in value of sun stock they have not had the capital to do big things with java and netbeans. it's been sad, not having java keepup with microsoft and .net now they can, they will have the money, a company committed to creating great products and excellence now they have a lot of good ibm software developers to evolve the language, to do the things that sun could not afford or not envisioned. i do feel bad for some of the sub employees who will not be able to hangle the culture shock, i mean from sun hippies in tshirts, shorts and sandles high on weed who don't show up to work or come in after lunch because they were playing or smoking some shit well past midnight to ibm professionals in suites who come in on time ready to play. microsoft needs to watch out.