WSJ: IBM in Talks to Acquire Sun Micro for $6.5 Billion

Authored by Mark Hefflinger on March 18, 2009 - 9:21am.

Santa Clara, Calif. - IBM (NYSE: IBM) is in talks to acquire server maker Sun Microsystems (NASD: JAVA) in a potential deal that could be worth more than $6.5 billion, The Wall Street Journal reported on Wednesday. If consummated, it would mark the largest acquisition in IBM's history, helping to strengthen its position against rival HP.

IBM currently leads the world's server market with a 31.4% market share, according to IDC.

HP is second (29.5%), Dell third (11.6%) and Sun fourth (10.6).

The news sent shares of Sun soaring more than 80% by late Wednesday.

http://www.sun.com