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WSJ says IBM in talks to acquire SunMatthew Aslett, March 18, 2009 @ 4:38 am ET
IBM is in talks to acquire Sun, according to a report in the Wall Street Journal that cites “people familiar with the matter”.
According to the report the deal on the table is $6.5bn in cash, although it sounds as if negotiations could be faltering: “People familiar with the matter cautioned that, while talks are under way, a transaction might not occur and that the talks could fall apart.” UPDATE – The New York Times reports that the price is nearer $7bn, citing “a person with knowledge of the negotiations” -UPDATE.
As the WSJ notes a deal to acquire Sun would hurt IBM’s profit margins and would be contrary to IBM’s recent strategy of acquiring software and services. There are complementary products in the Sun portfolio of course, but it would also add yet another server and processor architecture, not to mention operating system, to the IBM stable.
The open source implications could be interesting, however, especially if IBM were to consider “foundationalizing” (is that a word? It is now) Sun’s software portfolio. Just a thought.
UPDATE – I notice ComputerWorld has linked here noting that I am “worried” by the prospect of IBM acquiring Sun. Actually I am very positive about the idea, although of course there would be issues to overcome. – UPDATE
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