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Sun In Talks To Be Acquired By IBM
gandhi_2 writes "Sun Microsystems soared in European trading after a report that it was in talks to be acquired by IBM.
The Wall Street Journal, quoting "people familiar with the matter," reported Wednesday that International Business Machines was in talks to buy the company for at least $6.5 billion in cash, a premium of more than 100 percent over the company's closing share price Tuesday. Officials of Sun and IBM could not immediately be reached for comment."
Now, if only the US gov't will allow it. IBM+Sun would be a huge company.
IBM + SUN would be a huge company, but only slightly larger than IBM.
IBM: Around 400,000 employees. Sun: 33,000 employees.
IBM: $104 billion in revenue. Sun: $14 billion.
IBM: $125 billion market cap. Sun: $3.7 billion
Sometimes it's best to just let stupid people be stupid.
Come on!
Sun has open sourced:
NFS
OpenOffice
GlassFish
Java
Java Enterprise Edition
Netbeans
What has IBM open sourced? Oh...uh...Eclipse
IBM has tons of closed source products:
Websphere
DB2
Rational
Lotus Notes
etc.....
Give me a break!
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Perhaps, but I think that IBM would be getting one hell of a sweet deal
Although it is a 100% markup from Tuesday's closing price, that's still only a share price of $9 or $10. Barring the insanity of the dotcom bubble, when Sun was selling at $100-$200, it has been in the range of $12-$20 for the last 15 years. Between the dotcom bust and the global economic clusterf%#k, it had been solidly above $15. So, the way I see it, IBM is able to pick up a good company with solid products, a good long-term strategy, and an enormous IP portfolio for a 30%-40% discount.
That is the opinion of Danese Cooper. See this for the opinion of one of the engineers:
http://www.opensolaris.org/jive/message.jspa?messageID=55013#55008
I worked down the hall from an engineer very much involved in the whole open sourcing of Solaris at the time. The people that knew about this back then would agree that he was the principle engineer working on this, so much so that he had hardly any time for putbacks, so I got to see a lot of what was happening.
I really can't think of any engineer on that floor or the one below nor anyone I knew from England or LA that was opposed to the GPL because they did not want their work released under that license. That is the view that Danese expressed, and I believe she was incorrect. In fact she sullied the reputation of the whole lot of us when she made that talk and upset me and other people I am sure. Rather there were a portion of the engineers that felt that releasing under the GPL would be bad for Sun since Linux could take parts of Solaris and then destroy Sun. In any case it was not the engineers that made the decisions about the CDDL and not for those reasons (Sun could do whatever it wanted with the code its employees wrote), rather it was a committee with involvement from many other groups as well including many lawyers and most of everyone VP level and up with roots in the ON tree.
I knew about Danese when there and she came across as a zealot. She lost the argument for GPL and since then has behaved like a diva about that. Cooler heads prevailed. There were practical reasons that the GPL or LGPL was not appropriate and GPLv3 would not be ready for years. One big reason was the patent clusterf*ck and the other was that people at Sun wanted anyone else to be able to use open source solaris code in any way they liked as long as it was open source as well. That created the CDDL which was a file based license. It allowed you to mix in whatever other files you wanted and just those files that were CDDL to begin with remained so. There was no is it linked, statically linked, how much of the .h files are used, do you needed anything under a different license to build it, etc. That is the real reason that the CDDL was created. It is not the fault of Sun and certainly not the fine engineers that the GPL is incompatible with that.
Sure some people that were afraid of Sun collapsing if Linux could just take the good parts of Solaris wholesale and were worried about the future of the company because of that breathed a sigh of relief, but it was not because of them or that worry that the CDDL was created. The fact remains that if people high enough were not convinced that open souring at all was a risk to Sun's future, there would be no open solaris period.
That is my opinion and point of view of what took place. An official explanation of the CDDL is here:
http://www.opensolaris.org/os/about/faq/licensing_faq/
It goes into details about the whys of CDDL and the why nots of other licenses. It is a fair explanation. So the point to take home is that there are those that think being incompatible with the GPL was the prime reason for the CDDL, other people think that is not the case and there were other prime reasons. The people that make the anti GPL argument are all big GPL proponents though. Also truthfully there were some people relieved when open solaris was not under the GPL, but for the simple reason that they were worried about the future of the company, not that they did not want the work that they had done released under the GPL. SUNW (back then) had gone from $110+ to less than $30 per share in that period afterall, people were twitchy. I can tell you that it was a great feeling personally when I knew other people could see and use the code that I had written.
Other comments in this thread are incorrect. Here is the truth:
-- IBM still develops their JVM.
-- The IBM JVM is currently at the 1.6 level (which you can find in WebSphere 6.2 products). Same spec level as the latest recommended version of the Sun JVM.
-- IBM also develops their own implementation of the Java class libraries.
-- Writing a fast JVM is not "a few months work". It took both Sun and IBM years of development to produce JVMs with reasonable performance. You can argue that the research supporting them (and around VMs in general) is now fairly well-known, but implementing it is still nontrivial.
Thank you. Feel free to mod this up now, since I am apparently the only one who's gotten this correct.