March 19, 2009

IBM and Sun is it s deal

Talks are ongoing between the computer makers IBM and Sun Microsystems; it looks as if IBM is looking to bolster their standing in the internet sector by pressing the communication and finance sectors.

These two companies although at first may look as if they go after different markets, their main core of revenues is from the business sector that are not using Microsoft products, this common interest means that this could be a perfect match.

However, it is early days yet, it looks as if IBM is going to have to fork out something in the region of $6.5 billion, which is about twice the current price of Sun shares.

Would this mean that IBM becomes stronger, logic would say yes initially, but these are strange times and drastic measures can sometimes return to haunt you.

Source [WSJ]