International Business Machines (IBM) is in talks to buy Sun Microsystems, the Wall Street Journal and other U.S. media outlets reported on Wednesday, citing people familiar with the matter.
It is unclear whether the negotiations will result in a transaction, but if the deal does go through, IBM is likely to pay at least US$6.5 billion in cash to acquire Sun, the Wall Street Journal said.
The deal would shake up the global tech industry and spell the end of Sun, the Silicon Valley pioneer that was struggling with slipping sales even before the recession hit other tech companies last fall, the San Jose Mercury News noted.
Such a deal would also give New York-based IBM more ammunition in its rivalry with companies such as Hewlett-Packard (HP), which has recently challenged IBM in the lucrative IT services business.
The price IBM reportedly offers would be more than twice the market capitalization of Sun, which has seen its stock price sink below US$5 in recent months.
(CRI March 19, 2009)
