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IBM

Submission + - A Theory on IBM's Sun Buyout (twothirty.am)

koutbo6 writes: "My theory is that IBM bid for SUN without the intention of buying them out because there is so much overlap in their business. The plan is to make IBM's foes (Cisco and Oracle) pay more for SUN, making them less effective in their competition with IBM after the buyout since they would have less capital resources. My prediction is that Sun get's bought out by Oracle or Cisco for no less than $8 Billion. http://twothirty.am/blog/2009/04/06/ibm_sun_buyout_theory/"

Comment Re:Just how much is enough? (Score 2, Insightful) 291

I believe sun market cap was in the $3-$4 billion range, it shot up to $6 when IBM plans were announced.
They have a good chance to justify a higher price given their IP and how crazy stock market valuation is. Don't you think it's odd for a company such as IBM to offer this price for SUN given the huge overlap between them? not to mention that many of the software technologies are open sourced and IBM could take advantage of them
I believe this is a move from IBM to make SUN more expensive for likely suitors. Which is why Cisco will have to pay at least $8 billion now if they are to acquire SUN, which I think will hapen.

Comment AM i missing something? (Score 1) 257

Aren't the costs mentioned by NYT fixed in nature?
Which means, if they are higher, it would just take longer to recoup.
Lets use a liberal estimate of these costs and say it was $2000.
A customer paying $60 per month, would pay it in 34 months. Even if $40 were going towards paying that costs, and $20 to cover variable costs, it would take 50 months to recoup.

Seem to me like a reasonable time before an investment starts making profit. If only the telcos would just stop abusing their customers and win their loyalty for that period.

Here's another thought, could it be the legal fees and the mismanagement overhead what's making the telcos less profitable?

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