IBM reportedly revises Sun offer to $7B
IBM has reportedly revised its offer to acquire Sun Microsystems to $9.50 per share, down from the original $10 per share offer. The new offer still places the valuation of Sun at around $7 billion, which is nearly double what Sun's shares were trading for before prior to IBM's bid.
The Wall Street Journal reports that the final deal may be unveiled Friday, according to unnamed sources. The same sources told the WSJ that IBM's board of directors has already approved the deal, however.
Sun, though it has struggled for several years, still controls many lucrative patents around sever technology and computer programming languages. IBM would be able to complement existing services with the acquisition, as well as taking over a competitor in some of the markets it plays in.
IBM still faces potential regulatory roadblocks to completing this deal, as the merged companies would only have a few competitors in several areas of business.
- see the Wall Street Journal article here