Technology Stocks : All About Sun Microsystems


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From: QwikSand4/6/2009 4:47:52 AM
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Doesn't every acquisition negotiation in the galaxy proceed through a yes-no-yes-no cycle?

The supposed $9-10 price range always seemed ridiculous to me. There's so much speculation in the media about why IBM is contemplating this buy, but nobody really knows. My own speculation is they're just ready to pay to eliminate a competitor, but not to pay very much. IBM may do just as much to eliminate Sun by making it generally known that its future is a blank. Now Sun has a tougher time winning competitive bidding situations and is left with nothing but servicing their current (shrinking) customer base.

If the withdrawal of this offer is real rather than a negotiating ploy, what does Sun do next? That is the question. Sun's in no position to do much negotiating. They'll be back saying it's just peachy for IBM to walk away if there's DOJ issues.

--QS
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