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What’s Next, Now That The Sun-IBM Merger Is Off

Posted by Scott_Ruecker on · 7 comments
GigaOM; By Om Malik 		Mail this story
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Another idea came to me after reading Software AG Deputy CTO Mike Miko Matsumara's blog, who thinks that with this deal collapsing, we might see the return of Sun Co-founder, Scott McNealy. Whether that happens or not, the company should also pursue an option of going private. The four Sun co-founders - Scott McNealy, Bill Joy, Vinod Khosla and Andy Bechtolsheim - swing enough clout in the Valley to help put together a rescue package. Given how easily Palm has been able to raise additional funding, I don't think Sun will have trouble raising the capital. Bad as it is - down 10.7 percent from fiscal 2008 - Sun will post revenues of just over $12 billion. And it still has a few billion dollars in cash.

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Comments (7)

tuxchick ·
Sun is profitable and has money in the bank. Yet the analysts and pundits have been claiming for years that Sun needs to be rescued. Rescued from what? If they go toes-up, that's life. Businesses fail all the time. If they make it, so what- businesses succeed all the time.

Very weird.
jezuch ·
Apparently analysts look on share price and share price only. For some odd reason Sun's shares have been in a free fall for a very long time and nobody knows why.
tuxchick ·
Maybe because analysts and pundits keep predicting Sun's imminent demise?
gus3 ·
IMHO, because they focus their hardware too much on the business and performance niche, and ignore the individual consumer market. How many people go out and buy a new Sun system for the desktop?
caitlyn ·
@gus3: That might be correct for mindshare which influences the market. OTOH the market should be aware that the big money is made in the enterprise not in consumer space. Also, if consumer space is so important why is Red Hat such a market darling?
gus3 ·
Red Hat didn't develop their software specifically for hardware that you can reasonably get only from them. You can buy a PC, or build one, put Red Hat on it, and get a lot of bang for the buck.

Sun designed SunOS/Solaris for Sun Sparc systems. If you want to get the most from Java on Solaris, you have to run it on a Sun Sparc. If you're going to build your own Sparc system, you might as well start by building a chip fab. Sun decided to ignore the home/desktop market early on, and now it's coming back to bite them.
jezuch ·
Quoting:Maybe because analysts and pundits keep predicting Sun's imminent demise?


This is a nasty positive feedback loop, then. Analysts predict doom, shares go down, analysts predict doom because shares go down etc. ;)

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