IBM Pulls Deal for Sun Microsystems

In recent weeks, many industry experts believed that IBM was close to purchasing Sun Microsystems. However, that deal is now up in the air after a report that IBM has pulled the deal. In total, IBM reportedly had an offer on the table to purchase Sun Microsystems for a $7 billion.

Will Sun Microsystems be purchased by IBM? (Image: Flickr)

Rumors have surfaced that IBM is angry that Sun Microsystems is now listening to offers from other companies. If that is the truth, this latest news could very well be a bargaining ploy by IBM. While there are a few other companies that could conceivably purchase Sun Microsystems, IBM makes the most sense for all parties involved.

The $7 billion offer would calculate out to a little less than $10 per Sun share. Prior to the negotiations began last month, Sun’s shares had dropped to under $5. Currently, Sun Microsystems stock is traded for approximately $8.50.

Sun Microsystems was founded in 1982 and is currently located in the city of Santa Clara in California. The company deals in computer and information technologies. Although Sun Microsystems has reportedly been struggling in recent years, IBM sees the company as a property that would allow it to become a dominant force in the computing industry.

Source: Wire Reports