Wednesday, March 18, 2009

Big Blue To Buy The Dot In .COM

Remember the we are the dot in .com ads? Of course later it became we are the dot in the .com crash :-)

So IBM is in talks to buy Sun Microsystems Inc for 6.5 billion dollars. Sun is up 3.42 or 68.81% in pre market trading today. A while back it was noted that Sun's stock was basically worth 0 dollars because their market cap was the same as what they had in cash.

This acquisition probably makes sense to IBM because it will take out another Unix vendor and IBM also has a heavy investment in Java with a variety of products.

Sun bought MySQL not too long ago and butchered it, MySQL 5.1 was released with crashing bugs and Monty Widenius left Sun. This is going to be interesting since IBM already has a database product DB2

The Sun acquisition could also be because of the announcement that Cisco Systems Inc would be selling their own servers and stepping on IBM's turf.

This is going to be very interesting, after this downturn/recession/depression is over I think we are going to have a lot less tech companies. I am wondering if Oracle, HP, Microsoft or Google will make any major acquisition s in the coming months.

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