Welcome!

Log Management Authors: Dana Gardner, Pat Romanski, Elizabeth White, David H Deans, Carmen Gonzalez

Related Topics: IBM Cloud, Java IoT, Linux Containers, Recurring Revenue, Log Management, Server Monitoring

IBM Cloud: Article

IBM Reportedly Pulls Offer for Sun

No news outlet could say whether the rift is tactical or whether it will be mended

Sun's board rejected a formal IBM offer for the company Saturday as too low, according to the Wall Street Journal.

Apparently the price IBM offered was $9.40 a share or less, down from a reported $9.55 late last week.

IBM pulled its roughly $7 billion offer off the table on Sunday, according to the Journal, the AP and the New York Times, after Sun terminated IBM's exclusive bargaining rights.



No news outlet could say whether the rift is tactical or whether it will be mended.

The AP claimed it heard the two sides were still meeting Sunday. The Journal then waded in and said the companies were "still in touch by phone" and that the situation was "fluid."

Unless the talks get back on track, Sun's stock price, bid up to $8.49 Friday in anticipation of a deal Monday, may crash.

Sun, which shopped itself around for months, according to Intel CEO Paul Otellini, is believed to be pretty much in a corner with no other acquirer likely, particularly at such a premium, roughly double its stock price when news of the talks leaked out on March 19.

The price originally heard was $10-$11 a share but that did not appear to survive IBM's due diligence.


As of last week Sun was reportedly willing to accept a cut provided IBM committed to completing the deal despite what may be long and intense antitrust scrutiny particularly around their Unix server and tape storage interests. IBM+Sun represent 65% of all Unix boxes and a monopoly in tape.

The Journal said last Thursday that "Sun's board wants to limit IBM's ability to exit the deal," which could face regulator strings.

On Sunday, the paper said Sun felt IBM had "too much leeway to walk away from the deal." The Times said IBM felt the guarantees Sun wanted were "onerous."

Although it's assumed they got some sort of informal ruling from the regulators early on, the Journal suggested Sun wanted an undertaking from IBM to close the deal even if regulators ultimately demanded divestiture.

The Times said that IBM lowered its price because the payoffs in the "change of control" contracts with Sun executives, senior engineers and managers were "higher and extended more broadly across the company than it had anticipated." That ought to raise stockholders' hackles.

Most industry observers are amazed that IBM was willing to pay even $9.55 for Sun. Six dollars would seem more appropriate to them.

It would be IBM's largest acquisition ever.

It is unclear what else IBM might buy instead of Sun since CEO Sam Palmisano has indicated he's interested in acquisitions.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...