WSJ(Wall Street Journal) has reported taht IBM might be eyeing Sun Microsystem buyout. Deal will give significant market share on hardware and software. Hardware as in servers, data storage and other systems and software is Linux and Java Software .
The deal could be in range of $6.5 billion which will translate into 100% premium on the current market price of Sun Micro.
IBM is world's largest server manufacturer while sun is at fourth place.
Sun recently announced $2 billion quarterly loss and planned to cut the workforce.
IBM is trying to position itself as a one-stop shop for all the IT requirements. Cisco's foray into server market could see more consolidation in this space through mergers and acquisitions.
It is being said that though the quoted price is at 100% premium the valuations are still cheap because of the recent meltdown in the stock market.
IBM share lost value in the stock market while Sun Micro soared 63%
Wednesday, March 18, 2009
IBM - Sun Microsystems Multi Billion Dollar Deal
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