Sun Still Seeking IBM Deal

by Jordan Yerman | April 16, 2009 at 09:09 am

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Just like in high school, two popular couple almost got together, but didn't, and now they may do so again, and the rumor mill is in overdrive. Supposedly, Sun Microsystems is back in acquisition talks with IBM after previous efforts failed.

Perhaps they can kiss and make up if IBM can convince Sun that it isn't afraid of commitment. See, that's the tough part.

The companies are locked in a stalemate after negotiations fell apart almost two weeks ago, said the people, who declined to be identified because the information is confidential. There were no discussions as of yesterday and each company is waiting for the other to make a move, the people said.

While neither Sun nor IBM has officially confirmed the existence of merger talks, the companies have reportedly been in discussions since mid-March or earlier, with the drama playing out in a series of leaks to the media.

The possible merger has been valued at about US$7 billion.

This will be great news for Sun's stock, as it's seen as a ship without a harbor at the moment.