IBM May Be Getting Closer to Acquiring Sun

By Chris Preimesberger  |  Posted 2009-04-02 Print this article Print

Apparently, Sun has agreed to accept a lower price in return for stronger commitments from IBM that it will complete the deal even if it faces intense regulatory scrutiny, the Wall Street Journal quoted inside sources as saying.

IBM is apparently closer to closing a deal to acquire Sun Microsystems after negotitating down the per-share price from between $10 and $11 per share to between $9 and $10, the Wall Street Journal reported April 2.

Apparently, Sun has agreed to accept the lower price in return for stronger commitments from IBM that it will complete the deal even if it faces intense regulatory scrutiny, the Journal quoted its sources as saying.

Lawyers for IBM have been doing extra due diligence around the clock for the last two weeks since the intended acquisition first broke into the news March 18.

Sun still has an IP lawsuit on the books around ZFS (Zettabyte File System for open storage) going against NetApp, and those details have to be worked out to the possible new owner's satisfaction.

There also are many customized licensing arrangements to iron out with customers who have both IBM and Sun products and services under SLA.

In short, there are numerous complications to such an acquisition, so the lawyers -- including the celebrated IT intellectual property firm Wilson, Sonsini & Goodrich of Palo Alto, Calif. -- are in the driver's seat at the moment.

As soon as a decision on the deal is reached, eWEEK will have full coverage of the news and of its impact on the enterprise IT market.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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