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IBM Withdraws $7B Offer For Sun Microsystems, Says NYT
suraj.sun points to a story in the New York Times indicating that the much-rumored merger (or purchase) that would have united Sun with IBM may have dissolved before it began. Excerpting: "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. .. 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. ... 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."
Is that internet slang for "much-rumured merger?"
Who edits the editors?
I was looking forward to the merger, actually.
I hate to think about it, but a Cisco Sun merger might make sense. At least at first glance.
Think Deeply.
Sun seems to want to hold on for a better bid than IBM's $7 billion, but there's seems to be a hard time justifying much higher of a markup beyond the $6.3 billion it has in market cap. Who wants to bid more?
I saw this a few years ago and it made me true to my moniker: http://www.dslreports.com/forum/r19080808-Ars-technica-on-Sun-strategy-over-the-years. Looks like we have an edit to make to this spot-on, funny-but-sad pie chart.
The more you regulate a company, the worse its products become.
If Apple bought Sun, then they would be a very interesting Server-Desktop combo.
RFC2119
Uh huh. If you're an executive in a company and the suitor making the offer won't agree to a golden parachute then it doesn't matter to you how much they are offering per share.
How we know is more important than what we know.
... after all, why not? They know how to make a profit.
Classic April Fools, IBM!
Thank you, Edward Snowden.
"Arguments from authority are worthless." —Carl Sagan
According to the article, IBM wasn't refusing to offer them a golden parachute. What it says is that various people at Sun already had contracts with Sun guaranteeing them golden parachutes in the event of a buyout. When IBM worked up all the figures, they realized that the golden parachutes were going to cost more than they'd thought, so they reduced their offer.
Find free books.
Here is a link to the Bloomberg news article. No registration or subscription required.
"The quality of life is determined by its activites."--Aristotle
If true.
And I say that for three very important reasons:
a) IBM was sure to 'consolidate' a great number of things. And I'm sure any remnants of Sun left after this process would have been IBM-ized. And I do say that with a great deal of negative connotation. IBM has a habit of having some great tech, but in many cases doing very dumb things to it to make it annoying to work with. (Exhibit #1 = AIX boxen)
b) Our choices for 'iron' and 'OS' variety in the IT space would have been reduced as I'm sure overalpping server lines would disappear, as well as perhaps an OS (AIX vs. Solaris). Some variety in the I.T. space is most definitely to our advantage as I.T. folks. Of course, pricing competition between rivals is always a good thing, too.
c) Lastly, the most important thing, is that we'd have lost one of the most innovative enterprise I.T. companies ever. Say what you will about their ability to turn it into large $$$, but Sun has come up with some of the most innovative ideas the server-related I.T industry has seen since their inception....and they continue to do so. I think many people lose sight of this as they like to whine about Sun simply because they're a big corporation.
Should IBM wind up buying SUN after all, I think the name of the company should be Blue Sun.
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$tar -xvf
IBM (and to a lesser extent, Sun) GET uptime. They understand what it takes to develop systems with uptime measured in more years than slashot has even existed... think DECADES and you are starting to get the idea.
For all the bluster about uptimes with Linux, it really isn't all that great about it. For example, if you really do have 1 year of uptime on a public-facing system, you are a bad admin because there have been a number of security bulletins over any given year's time w/ Linux.
The miracle of Linux is that the uptimes are as good as they are, as cheaply as it costs. It's damned impressive that you can sustain 3-4 nines of uptime with a system board purchased at pricewatch for 60 dollars, yet the numbers don't lie - this isn't unusual!
The real question is whether or not those 4 hours per year of downtime at 99.95% actually is worth the jump from a $2,500 dollar server to a $75,000 dollar server. (I have no idea what an AS/400 really costs)
The number of cases where the additional costs are really worth it is rare. Less is more, better is worse, etc....
I have no problem with your religion until you decide it's reason to deprive others of the truth.
Not HP! Anyone but HP!
.NET running on Windows. And although Linux has finally started to gain some traction on the desktop, that too would come to a halt without OpenOffice.
Remember when Compaq acquired DEC? They quickly went out to all of DEC's unix customers and told them "Good news! We're migrating you to Windows!" A few made the switch, but most of them replied "Fuck you. If you're killing off your own unix business then we're moving to Sun." And most of them did.
Compaq and HP are now merged, and the once-great DEC unix business has all but been dissolved. Is that the fate which awaits Sun if they are acquired by HP? HP is firmly under the control of Microsoft. The day after the merger, they would receive their marching orders from Redmond: quietly suffocate Java and OpenOffice.
Java is currently the lingua franca of business logic, and whether you like it or not, it's a key enabler for Linux's success in the enterprise. Without Java, the data center would slowly be taken over by
Cisco is a slightly better bet, but I'm not sure they'd really know what to do with Sun. Cisco is fabulous at merging networking companies, but when they buy other types of companies (such as WebEx or the people who built Openchange) they really don't seem to know what to do with them. IBM would have been a good merger. Now I'm worried.
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