Feeds

IBM-Sun deal breaking down, report says

Too little money. Too little commitment

Securing Web Applications Made Simple and Scalable

According to spokespeople for the two companies a report on Sunday evening in the Wall Street Journal, the much-rumored and never-admitted merger talks between IBM and Sun Microsystems appear to have hit an impasse.

No kidding. Huh.

The report posted on Sunday said that Sun's board of directors had rejected a "formal acquisition offer" from IBM on Saturday, which was believed to be worth "$9.40 or below" per share, which works out to around $6.85bn. Sun was also, according to the report, annoyed that IBM would be able to walk away from the acquisition too easily as it was configured in IBM's proposal.

Apparently, Sun has sent back the engagement ring a notice to Big Blue terminating IBM's "agreement for exclusive negotiations." And IBM has subsequently withdrawn its statements of honorable intentions offer to buy Sun. If Sun were pregnant, Pa McNealy would be going over to Pa Palmisano's house with a loaded shotgun and this deal would be done the good, old-fashioned, American way, with a Justice (Department) of the Peace. That's not to say that Sun isn't screwed, particularly after all the merger talks and IBM's having seen, er, all the goods.

Plenty of people think this is a bad deal, particularly for Sun. But that doesn't mean it is dead. The soap opera will no doubt continue, and Rupert Murdoch has a seat right next to the stage to make the most of it. ®

Build a business case: developing custom apps

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.