The rumors were wrong. Oracle, not IBM, announced its plans to buy Sun Microsystems this morning. The deal is set to close this summer. The New York Times reports:
The Oracle Corporation, the technology information company, announced Monday that it would acquire a rival, Sun Microsystems, for $9.50 a share, which would value the transition at $7.4 billion.
The deal with Oracle came about two weeks after I.B.M. ended its talks with Sun. The Sun board balked at that deal after I.B.M. lowered its offer to $9.40 a share from $10. Still, Monday’s deal represented a 42 percent premium over Sun’s closing price of $6.69 on Friday.
A Oracle-Sun deal disrupts the traditional relationships formed between some of the technology industry’s largest players.
Oracle, for example, has long-standing partnerships with Sun’s rivals, including Hewlett-Packard and Dell. These sellers of server computers work to fine tune Oracle’s database and business software for their computers. I.B.M., which competes against Oracle in the software market, also comes under new threats with the deal.
Oracle, the world’s second-biggest software maker, has spent almost $34.5 billion on purchases since 2005, making it the most acquisitive software company in the world.
IBM execs must be banging their heads on a hard surface right now.