IBM in talks to buy Sun Microsystems

IBM logoIBM is in talks to buy Sun Microsystems Inc for at least $6.5 billion, The Wall Street Journal reported, in a deal that could bolster their computer server products against rivals such as Hewlett-Packard Co.

hat would translate into a premium of about 100 percent over Sun's Nasdaq closing price Tuesday of $4.97 a share, the paper said, citing people familiar with the matter.

Sun, which was not immediately available for comment, has long been cited as a takeover target for International Business Machines Corp, HP, Dell Inc or Cisco Systems Inc, which this week unveiled its plan to start making blade servers that power corporate computer networks.

But bankers and analysts have also said the challenge of valuing Sun's intertwined software, hardware and services businesses could put off potential buyers. The company has never fully recovered from the dot-com bubble burst in the early 2000s, when demand for its high-end servers cratered.

"It makes sense in an industry consolidation view, but looking at Sun's performance over the last couple of years, it's not one of my top picks for IBM to buy," said Jyske Bank analyst Robert Jakobsen, speaking from Denmark.

"Having said that, there's clearly a huge synergy combining these two companies," he said.

"It will lessen the competitive pressure within the data center," he said, adding, "The market hasn't been kind to Sun Microsystems in the last 12 months. So it's not an expensive acquisition in my view."

An IBM spokesman in Bangalore declined to comment. The U.S. representatives of the company, which had nearly $13 billion in cash at the end of 2008, were not immediately available.

The Frankfurt shares of Sun rose 54 percent after The Wall Street Journal's online report, which said the company had approached a number of large tech companies in the hopes of being acquired. HP declined the offer, the paper said, citing a person briefed on the matter.

The paper said a deal with IBM could happen as early as this week, but that talks could also fall apart. If IBM buys Sun, it would be the company's largest acquisition since it bought Canadian software maker Cognos for about $5 billion in January 2008.

Source: Yahoo

Tags: IBM, Sun

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Purported leak reveals upcoming phablet’s design
 
Google boasts of integration with Google Assistant and Google Home
 
The support team replied that some hardware limitations are leading to malfunctions
 
The retailer will allow results to appear in the Shopping section of Google’s search engine
 
Trump is seeking to lift the export ban as a "personal favor" to China
 
The company reportedly sniffed around AMD and Nvidia as potential GPU suppliers
 
 
iPhone users in the US will be able to automatically share their location with first responders
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)