IBM acquisition of Sun near to a close at $7 billion. Not.

By on April 6, 2009, 2:22 AM
Update: The short version is, the deal is not taking place anymore. The long version can be read at the NY Times. Hopefully we won't have to update later on today to reverse the story, again.

Rumors of IBM taking over Sun Microsystems have intensified over the last 24 hours after more details and supposed confirmations arose regarding the deal that could be announced as soon as today, according to various sources.

IBM would pay $9.55 a share for Sun or about $7 billion total, slightly below a previous bid of $10 a share. At this price, Sun would be receiving almost a 100 percent premium over its valuation a month ago, before takeover talks became apparent. Sun, a veteran in computer servers and high-end workstations, has been looking for a buyer for at least a year. For many, IBM is one of a handful of deep pocketed companies that could extremely benefit from the purchase. The NY Times recently reported that IBM's board has already approved the deal.

The merger between these two IT giants would have its biggest impact in the Unix server market, estimated at $17 billion a year, of which the combined company would control some 65 percent, raising antitrust concerns.




User Comments: 7

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phantasm66 said:
I hope this works out well. Java is very important to me and this event will shape its future.
ravisunny2 said:
Oops!I hope they don't kill Java.
phantasm66 said:
They could not kill Java. iBM's own WebSphere runs on it. Its an application server that runs on Java, and hosts java applications. Java is too important for what they do, which is why they want to own it, I would imagine.
phantasm66 said:
I really hope they do reach an agreement and sell. IBM should I think keep java alive.[url]http://www.theregister.co.uk/2009/04/06/ibm_sun_b
eakdown_followup/[/url]
Julio said:
Either way I don't think Java or MySQL would go away, though they could be in better and more capable hands with IBM.
phantasm66 said:
Oh Java will be around as long as COBOL (which is still very much around, believe me!) but IBM should ensure it lasts and lasts.
ravisunny2 said:
[b]Originally posted by phantasm66:[/b][quote]They could not kill Java. iBM's own WebSphere runs on it. Its an application server that runs on Java, and hosts java applications. Java is too important for what they do, which is why they want to own it, I would imagine.[/quote]Thanks for this info. Gives me peace of mind.Java seems to be the only truly portable platform (AFAIK).
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