IBM withdraws $7b bid for Sun Microsystems

Earlier Neowin had reported that IBM was interested in purchasing Sun Microsystems for $7 billion in a plan to help move into the software market. The original plan to purchase the company for $10 - $11 a share, dropped to just $9.40 a share.

IBM later retracted its bid to purchase Sun Microsystems stating the companies could not come to an agreement. The Times reported that the price change after IBM's lawyers discovered that Sun's payments to senior employees were higher than anticipated. Shares plummeted for Sun Microsystems today after IBM backed out from the purchase of the company. The trades dropped by $2.19 (26%) to just $6.30 ahead of the markets opening.

Possible interest could be revisited in the future, much like Microsoft continues to revisit the idea of purchasing Yahoo. No discussions were left if IBM would ever reconsider purchasing Sun Microsystems, but now with the company's value lower than last week, talks could surface soon.

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I agree! lol... very ignorant. Solaris isn't going anywhere, Java isn't going anywhere, etc.... Solaris is still one of the best Unix operating systems available, and that's pretty well know in the enterprise market. It's certainly much better than AIX... AIX is garbage in my opinion. I work on both Windows and Solaris servers, and if I can run a given application on Solaris over Windows I'll always pick Solaris. Solaris is much more stable for applications that need high availability and stability.

They've been deader than Julius Caesar since the 90's so it's harder to go any further down. That dinosaur's already extinct.

excalpius said,
They've been deader than Julius Caesar since the 90's so it's harder to go any further down. That dinosaur's already extinct.

If it wasn't for them no OpenOffice, Java, OpenSolaris, etc.

There's one other possibility: Oracle may be preparing a competing bid.

Think about it. Sun servers are among the most popular choice for Oracle db's, and putting that hardware in IBM's hands suddenly makes things a little awkward for the big O.

An Oracle/Sun merger might make more sense than an IBM buyout on some levels. For one thing, there's a good chance that IBM might just have to spin off pieces of Sun to make the deal work for regulators.

And in the end, Larry Ellison's ego is just big enough that I'm betting he'd be tickled to beat them out on this.