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FRIDAY, NOVEMBER 27, 2009
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IBM to Nab Rival Sun for $7B

Deal would let IBM rule Unix server market

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(Newser) – IBM looks set to buy rival Sun Microsystems in a $7 billion deal that would make IBM king of the lucrative Unix server market, the New York Times reports. The $9.50-per-share agreement, already approved by IBM’s board, insiders say, could be announced today—though next week is more probable. Sun is a top seller of server computers and a big name in software, but it’s been in a decade-long slump.

“Sun has obviously been a lost child for many years, but they have some great assets,” said an analyst. Sun has wanted a suitor for months, and IBM has scrutinized the firm for weeks. But the deal could spark antitrust issues over hardware, because it would give IBM “close to total control” over a certain type of storage device, the Times notes.

In this Nov. 24, 2008, file photo, an IBM office is shown in New York.
In this Nov. 24, 2008, file photo, an IBM office is shown in New York.   (AP Photo/Mark Lennihan)
The entrance to the IBM plant, in Essex Junction, Vt., is seen Tuesday, Jan. 6, 2009.
The entrance to the IBM plant, in Essex Junction, Vt., is seen Tuesday, Jan. 6, 2009.   (AP Photo/Toby Talbot)
Sun Microsystems headquarters in Santa Clara, Calif.
Sun Microsystems headquarters in Santa Clara, Calif.   (AP Photo/Paul Sakuma, file)
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