IBM, Sun deal on the rocks

IBM Corp. has withrdrawn its $7 billion bid for Sun Micrsosystems after Sun’s board declined to accept a reduced offer, the New York Times is reporting.

Negotiations have been going on for weeks and with the collapse, questions are being raised about Sun’s future, the Times said. Sun had been looking for a suit for months and the failure of the IBM deal could mean it stick to its solo business model.

The deal had kicked off speculation that other companies such as Cisco, Dell and Hewlett-Parckard would have pursue other acqusitions to hold IBM at bay. The deals also faced regulatory scrutiny in the area of mainframes storage and Unix servers.


Reader Comments

Tue, Apr 7, 2009 wgk-eagle

Sun should get their collective whatever together and get 'er done. The combination is as good as it gets for the foreseeable future and it does more for each of the companies than they imagine. Powerhouse UNIX credibility and almost a lock on big gun iron. Chance to own the standards for UNIX software save for the Novell and OPEN leftovers. If IBM has reservations about the $$$, they should think that one over again. Many thought Sun was a dried up prune long, long ago and look how it hung on with significant technical innovation and prowess to this day!

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