Welcome!

Java Authors: Deborah Strickland, Raymond Feng, Maureen O'Gara, Per Sjofors, Lori MacVittie

Related Topics: Websphere, .NET, SAP, HP

Websphere: Article

Sun-IBM Watch

Everybody's sources dismissed the notion that IBM's due diligence was anything more than standard fare
By Maureen O'Gara
Article Rating:
March 24, 2009 11:32 AM EDT
Reads:
 3,512

The folks at the Wall Street Journal who brought us tales of IBM buying Sun for $6.5 billion-$8 billion last week were saying by Friday that due diligence was holding up any announcement.

The paper seemed to think that IBM lawyers were paying particular attention to Sun's many different IP licenses and formal agreements, including that 2004 antitrust deal with Microsoft that proved such a financial windfall for Sun. It got a patent cross-license out of it too.

Perhaps they're weighing whether Sun really had the right to open source Solaris. That was a mare's nest.

Reuters agreed with the Journal that any deal could take "several more days as IBM studies various parts of Sun's computer server and software business."

Nobody's sure how many days it will take.

Everybody's sources dismissed the notion that IBM's due diligence was anything more than standard fare.

The Journal, however, may have found another antitrust roadblock to the deal when it pointed out that buying Sun would give IBM a monopoly on the tape drive business where Sun is the only current competitor for the widgets used with mainframes and other big systems.

IBM's already got a problem with Unix systems so its lawyers are expected to do some fancy footwork with market definitions and broaden them out.

Published March 24, 2009 – Reads 3,512
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.