Oh noes! IBM withdrew its $7 billion bid to buy Sun Microsystems. The company has no other offers outstanding, which may mean that the well-known and well-loved Unix server supplier will have to go it alone in an uncertain economy. One interesting point, from NYT:
The Sun board did not reject the offer outright, but wanted certain guarantees that the I.B.M. side considered “onerous,” according to that person.
IBM dropped its price to $9.40 and the requirements included changing the management team and the movement/removal of some senior employees. Sun’s stock dropped to $8.49 last Friday.
IBM is certainly justified; in these times of financial insecurity, IBM has to be very cautious about what it brings to the table.
Sun won’t make it on its own. Either they’ll crawl back, or they’ll find another buyer, or we should all re-register with DoveBid soon.
this
Are you sure the deal is over?
I really do not think so. They may come back.
To me it seems like an Ego clash rather than sound business sense. Jonathan is a good fella, but he is unable to do proper justice to Sun Micro. They should have someone else who can really make things work for Sun now.
Hyperlink for the text “$7 billion bid to buy Sun Microsystems” gives a 404…. Wrong link… It should be http://www.crunchgear.com/2009/04/03/ibm-could-buy-sun
Glad I’m no longer a shareholder as sold at $9
What has Sun’s Board of Director’s done the last 10 + years? Why was Jonathan ready to take his Golden Parachute and Scott and his chronies not read? Sun’s arrogance continues and what the board has done or not done borders on criminal. Certainly shameful. Shame on you!
It is a moot point as to whether Sun rejected IBM’s offer outright: by simply not accepting IBM’s offer in its proposed form, and attempting to modify the terms, Sun rejected the original offer and provided a counter-offer, at which point IBM has no obligation to honor their previous commitment.
Also, Sun may very well have other suitors — by terms of their agreement with IBM, they could not at the time “shop around” and only could talk to IBM during the negotiation stage (per a NYT article from a couple of days ago).
Personally, I’m fairly certain IBM will come back — this is just a mating dance between these little companies, a negotiation technique which will improve IBM’s position, especially should Sun’s stock be brought down in the immediate future.
justified
IBM is also laying off a lot of people, so its no wonder they are not buying anything either. It wasn’t that long ago when my dad was laid off from them too
what’s really humerous is that JAVA was $4.75 before the rumor hit, and is now $6.50 after IBM left.
Where is the $2 in retained value coming from???
No where. it is the black hole of wall street. It’s the bubble.
http://www.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=1&chvs=Logarithmic&chdeh=1&chdet=1239074586868&chddm=6671&q=NASDAQ:JAVA&ntsp=0
Guess what? guess what?
You’re a bunch of idiots!!
pure stupidity:
http://tinyurl.com/javastillsix
wow, i do wish ibm could take over java
Sun doesn’t have much choices left and in time will be forced to accept IBM’s price.
If the talks have irretrievably failed, Sun stands to join the Walking dead companies. There will be a reluctance to buy Sun gear.
Well, blogged about this at: http://subbaiyer.wordpress.com/2009/04/06/ibm-sun-deal-fails/
your gay
c::::::3