Bloomberg reports that IBM is interested in purchasing Sun Microsystems for $6.5 billion. This acquisition makes sense for IBM although I don’t think it’s worth paying that amount for this company. IBM offers numerous Java-based solutions I think. I don’t see much advantage for IBM in this merger.
IBM May Pay $6.5 Billion to Buy Sun Microsystems, WSJ Reports
International Business Machines Corp. is in talks to buy Sun Microsystems Inc., the Wall Street Journal reported, citing people familiar with the matter.
IBM may pay at least $6.5 billion, 100 percent more than Sun’s closing price of $4.97 a share on Tuesday, the report said, citing the people. An agreement may not be reached, the newspaper said.
An acquisition of Sun Microsystems would bolster IBM’s Internet, data storage, government and telecommunications business, the newspaper said, citing the people.
In recent months, Sun Microsystems has contacted a number of technology companies with the aim of being acquired, people familiar with the matter said, according to the newspaper. Hewlett-Packard Co. declined the offer, the newspaper reported, citing a person briefed on the matter. (Source: Bloomberg)
Sun has too much open-source products and failed to really monetize much of their software. Perhaps IBM can do something about it.