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IBM said to be buying Sun Microsystems for $7B

Sam Symons   on 18 March 2009 - 19:47 · 13 comments & 3527 views

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The company IBM is currently negotiating a deal in which it will buy Sun Microsystems for the hefty sum of US$7 billion. The deal will be a very important one, and according to The NY Times could result in an anti-trust challenge.

A combination of these two companies would create a new one, with an immense amount of money being spent on research and development. As you may know, IBM and Sun are both companies that invest heavily into developing new technologies, and if they merged, they would have a budget of around about $9 billion a year on R&D alone.

According to the NY Times, Sun's stock has gone up by $4.10 (82%) a share since the news was announced, and is expected to hit around $10 per share. This deal would be the largest in IBM's history, the largest before this one was $4.9B for the company Cognos. Also, "Together, I.B.M. and Sun would have about 65 percent of the market for server computers running the Unix operating system and 42 percent of the total server market, measured in the dollar value of the market."

This would be a huge event in the history of technology, so be sure to keep a look out for more news on this as it develops.

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(3 replies) #1 random_n on 18 Mar 2009 - 23:00
That's pretty big... next thing we'll be hearing HP wants to merge with Dell and the two-horse race will be on! :-(
#1.1 PatrynXX on 19 Mar 2009 - 03:02
random_n said,
That's pretty big... next thing we'll be hearing HP wants to merge with Dell and the two-horse race will be on! :-(

Really odd, had a job interview in their tech support a couple weeks ago, woulda been a nice discussion. o_O oh well. Frankly I'd love to see IBM back on their feet. Wish they'd make puters again.
#1.2 chilliadus on 19 Mar 2009 - 05:05
random_n said,
That's pretty big... next thing we'll be hearing HP wants to merge with Dell and the two-horse race will be on! :-(


Nothing would surprise me since Compaq acquired DEC. That was a real sad moment.
#1.3 C++ on 19 Mar 2009 - 10:13
PatrynXX said,
Really odd, had a job interview in their tech support a couple weeks ago, woulda been a nice discussion. o_O oh well. Frankly I'd love to see IBM back on their feet. Wish they'd make puters again.

Back on their feet? Where did you get the impression that IBM is struggling? They didn't sell their PC division because they were hurting. They sold it because they couldn't be bothered with the peanuts it was worth to them compared to their server and supercomputer business.

This is the world's biggest research company, bar none. They file for more patents yearly than anyone else in the world. It didn't make sense for them to dwell on devalued consumer line crap.
(1 reply) #2 tripleXit on 18 Mar 2009 - 23:17
lol the past few months I've been thinking what would happen if IBM would acuire Sun (hypothetically)...but I never thought it would actually happen...most of IBM's software products are written in Java so this is a big plus for them, no more licensing fees for Java!
#2.1 Macalicious on 19 Mar 2009 - 01:09
Why do you need to lie? you don't need to pay a licence free to Sun if you write software in Java - the only fee you do have to pay is if you want it to be J2EE or J2SE certified in the case of application servers and so on.
(2 replies) #3 Sean2989 on 18 Mar 2009 - 23:19
Well if the deal is finalized I wonder what IBM would do with Solaris? I wonder if this could spell trouble for Microsoft?
#3.1 Krome on 19 Mar 2009 - 02:13
Yeah I smell big trouble is brewing up.
#3.2 PGHammer on 19 Mar 2009 - 04:45
Sean2989 said,
Well if the deal is finalized I wonder what IBM would do with Solaris? I wonder if this could spell trouble for Microsoft?


Solaris is currently given away for personal and non-commercial use in the form of OpenSolaris (http://opensolaris.org); OpenSolaris also has a robust developer community of its own.

If Solaris/OpenSolaris competes with anyone, it's Linux and other flavors of UNIX, not Windows. What is really interesting is Sun's hardware business, especially the SPARC (not x86) end. While Sun's x86 business meshes quite well with IBM's services business, the SPARC business is built *entirely* around Solaris for SPARC, which is but a vestige of what it used to be (Sun's SPARC hardware business is practically a vestigal tail wagging a largely software/x86 dog).
#4 iwod on 19 Mar 2009 - 02:26
Netbeans and Eclipse - Finally Merge Together.
The best Java VM - From IBM, will now be properly integrated with OpenJDK and official Java VM.
SWT vs Swing - Continue to coexist?
Java will finally be a much better Desktop Platform because of IBM.

One thing wont change, their website. Both Sun and IBM 's website are so hard to navigate.
#5 nunjabusiness on 19 Mar 2009 - 04:59
Not to mention IBM would get a spanking Virtual Machine app (Virtual Box )
This is very cool news.
#6 chilliadus on 19 Mar 2009 - 05:00
The industry has been speculating this for a long, long time. Here's a 2002 article:

ZDNet:When will IBM buy Sun?
#7 BGM on 19 Mar 2009 - 12:50
where is the source?

had better not be the register... :o

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