Wednesday, 18 March 2009

IBM to buy Sun?

(By Richard Holway 9.45am 18th March 09) In a surprise move, the WSJ has reported that IBM is in talks to acquire Sun Microsystems for $6.5bor $4.97 a share (a near 100% premium on the closing price)

I am sure this gladdened the heart of every downtrodden M&A broker/Investment Bank thinking that perhaps the good times might at last return. But it is a lttle surprising given that IBM has been retreating from some of its hardware markets and, indeed, the server market is being particularly badly hit right now. IDC, puts IBM with a 31.4% of the world’s server market last year; H-P second with 29.5 % and Dell third with 11.6%. Sun ranked fourth, at 10.6%.

But maybe this is really all part of IBM's move into the Cloud?

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