IBM Withdraws $7 Bil Offer for Sun Microsystems-> 2
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by
suraj.sun
suraj.sun writes "I.B.M., after months of negotiations, withdrew its $7 billion bid for Sun Microsystems on Sunday, one day after Sun's board balked at a slightly reduced offer, according to a person close to the talks.
The deal's collapse raises questions about Sun's next step, since the I.B.M. offer was far above the value of the Silicon Valley company's shares when news of the I.B.M. offer first surfaced last month. Sun, an innovative pioneer in computer workstations and Internet-era software, has struggled in the marketplace in recent years.
Since last year, Sun executives had been meeting with potential buyers. I.B.M. stepped up, seeing an opportunity to add to its large software business, acquire valuable researchers and consolidate the market for larger, so-called server computers that corporations use in their data centers.
In their talks, I.B.M. and Sun had a contract to deal with each other exclusively. Now, Sun is free to pursue other suitors, including I.B.M. rivals like Hewlett-Packard and Cisco Systems. Cisco recently entered the market for server computers.
NYT : http://www.nytimes.com/2009/04/06/technology/business-computing/06blue.html"
Link to Original Source
The deal's collapse raises questions about Sun's next step, since the I.B.M. offer was far above the value of the Silicon Valley company's shares when news of the I.B.M. offer first surfaced last month. Sun, an innovative pioneer in computer workstations and Internet-era software, has struggled in the marketplace in recent years.
Since last year, Sun executives had been meeting with potential buyers. I.B.M. stepped up, seeing an opportunity to add to its large software business, acquire valuable researchers and consolidate the market for larger, so-called server computers that corporations use in their data centers.
In their talks, I.B.M. and Sun had a contract to deal with each other exclusively. Now, Sun is free to pursue other suitors, including I.B.M. rivals like Hewlett-Packard and Cisco Systems. Cisco recently entered the market for server computers.
NYT : http://www.nytimes.com/2009/04/06/technology/business-computing/06blue.html"
Link to Original Source
Real (Score:2)
IBM, Sun Micro break off talks: source [reuters.com]
I.B.M. Withdraws $7 Billion Offer for Sun Microsystems [nytimes.com]
IBM-Sun talks melt down [nbr.co.nz]
Now, what could happen to Sun now that ibm regrets that good offer... ?
I Would Lean CISCO (Score:1)