Feeds

IBM-Sun deal breaking down, report says

Too little money. Too little commitment

Intelligent flash storage arrays

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 And IBM has subsequently withdrawn its statements of honorable intentions offer to buy Sun.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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.