Sun for sale?
Dropping profits and stock prices have analysts speculating that Sun could be a target for either acquisition or a restructuring in which the company would sell off parts of the business and focus on a smaller set of technologies."In 12 months, Sun will not be the same company it is now," predicts Enterprise Strategy Group (ESG) analyst Brian Babineau.
Sun's server revenue and market share both dropped this year, according to a July report by Gartner. For all Sun businesses, net income for the fiscal year that ended June 30 was $403 million, a full $70 million less than the previous year.Sun's stock, which was trading at a high of $24.92 last October, was selling for just under $10 this week.
Fujitsu and HP would be leading candidates if Sun is for sale, Lyman wrote. Fujitsu "is already aligned with Sun, given its role in manufacturing Sparc processors and hardware," he wrote. A Sun buy "could also give Fujitsu, or any other potential acquirer, an instant open source product line."
HP could see a Sun acquisition as a way to get deeper into open source software, Lyman wrote. Even though HP hasn't contributed a lot of code or resources to open source, it has benefited by certifying its hardware for Linux
Sun for sale?
Saturday, August 23, 2008
Posted by Vamshi & ; Karthik ; Kalyan at 9:31 PM
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