Possible acquisition has tech world talking
There’s big news in the tech world. The Huffington Post reports that shares of Sun Microsystems Inc. (the computer and information technology component vending giant) have skyrocketed after a published report claimed that IBM is in the preliminary stages of negotiations to buy Sun for at least $6.5 billion. In cash. Nobody ever tabbed IBM for needing instant payday loans…
The Wall Street Journal has said the deal could happen within days. However, it also recognizes that negotiations stand on the edge of a knife. Talks could just as easily go bad.
Sun Microsystems shares climbed 64 percent from $3.20 to $8.17 in trading the morning of the announcement, while IBM went down 1.9 percent to $91.14.
When there’s a fork in the road, take it
IBM and Sun Microsystems both make computer systems for the corporate world. By purchasing Sun, IBM would get a leg up in the global finance and telecommunications markets. Representatives from both sides have yet to comment as of this writing.
Despite the fact that there is overlap in terms of the technologies both companies use, IBM and Sun have taken rather different paths over the past 10 years. Sun, once a dot-com era shaker, has struggled since the tech bubble burst in 2001. They have cut many employees and shifted their focus to open-source software, instead of the systems they started with and with which they earned much of their money. IBM, a grandfather in the business, has been a picture of reliability when it comes to earnings statements.
IBM has bought out smaller tech companies before, but never something this large if the numbers are correct. A $6.5 billion deal could be just the thing to help Sun Microsystems shine a light once more.
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Sun’s stock would go up. They were one of the really big IT/corporate hardware firms in the early 90s. Lately they’ve been big proponents of open source software and operating systems, which is something I’d like to see have a bigger share in the market rather than the registration heavy Microsoft. Every product you buy, you have to register within an inch of its life and they end up with every piece of your personal info down to mother’s maiden name and your blood type, just for Office!