In a Register article, Gavin Clarke asks the obvious questions, and doesn’t seem to think the answers are all that great.
The profitability of Sun’s software business – if there are any profits at all – is another matter, and apparently, it is one that killed the IBM deal to buy Sun last weekend. IBM had been trying to get a handle on Sun’s software biz and specifically wanted to see what was profitable and what was not. Best I can figure, IBM is still waiting for those numbers. Maybe Sun’s shareholders are too.
Not so sure thats what killed the deal, or if the deal is really dead. No, I have no inside information. I speculate that someone was playing a game of brinksmanship and managed to scupper the deal in front of them. It is still possible to do a deal, but it is going to come in quite a bit less than before. Would be surprised to see significant premiums above market valuation.
But the article goes into detail on some of the issues Sun faces going forward. Well worth a read.
The issues in understanding where the value is in Sun are covered. The author questions current strategies and compares them to others in the spaces. And he comes to some interesting conclusions.
Viewed 6141 times by 1102 viewers