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IBM announces Sun Microsystems acquisition?

Yi-Wyn Yen
Comments 11
Betting closes on May 31 2009
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International Business Machines is reportedly in talks to buy Sun Microsystems for nearly $7 billion,. A takeover of Sun, which would be IBM's largest purchase ever, would give Big Blue a stronger foothold in the data center market with Hewlett-Packard.

IBM and Sun are also strong supporters of open-source software to rival Microsoft Windows. Sun created Java, an Internet programming language and bought MySQL, an open-source database that is used by ecommerce sites, last year. IBM is a strong supporter of Java with more than 8 million developers. 

While there's been talks of Cisco eyeing Sun, it appears that IBM may be more serious about an acquisition. 

Prediction: IBM announces the company is acquiring Sun Microsystems by June 1, 2009.

Image: viHannes/Flickr

 

 

 

 

Current Community Consensus 7%

Prediction Statistics

Betting Closes:May 31 2009Current Consensus:6.60%Total Bets:50
Today's Change:
0%
Life Time High:92.76%
Life Time Low:6.30%
Price History

Comments

Same comment I made on the Cisco/Sun prediction.

From a management perspective, acquisition leading to some level of attrition is one 'easy' way to improve the books, So, IBM acquiring Sun will:
1) Reduce labor costs (due to overlap)
2) Acquisition of Intellectual Property Asset and revenue from IP licensing (IBM Is very big on this)
3) Reduced competition (one less competitor)
4) Getting Sun at bargain prices (offered price is 100% premium on Sun stock)
Also, the trend is virtualization and that is exactly what Cisco had announced recently and Cisco is proposing an ecosystem to do just that without incurring the huge expense of an acquisition.


I'm confused. Betting closes on June 30, but the prediction is for acquisition announced by June 1? Seems like some easy money to be made in the month of June.

Also I'm assuming "IBM announces the company is acquiring Sun" means announcing intent to acquire, as these acquisitions take time, and there is talk of facing anti-trust discussions should such a purchase be contemplated.


@Zoltan, thanks for the catch. Will fix the judging date.

And yes, announcing means intent as opposed to when an actual acquisition closes.


All hail to the new King David!


А Русские что думают?


***Removed duplicate post***


Breaking news: Oracle agrees to buy Sun

Ian Lamont
Managing Editor
The Industry Standard


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