Sun for sale? Dropping profits, stock price fuel speculation

[kirangp]

Dropping profits and stock prices have analysts speculating that Sun could be a target for either acquisition or a restructuring in which the company would sell off parts of the business and focus on a smaller set of technologies.
"In 12 months, Sun will not be the same company it is now," predicts Enterprise Strategy Group (ESG) analyst Brian Babineau.
Sun's main products include Sparc processors and servers, the Solaris operating system and Java software.
While the entire company being purchased is a possibility, another option is a carve-out plan allowing Sun to offload some areas of the company and focus on those that remain innovative, Babineau says.



More

[desiibond]

they should not have released x86 version of solaris and they should not have made solaris opensource.

[Indyan]

Hmm..may be, but atm the speculation doesnt have much ground considering that its based simply on the low profits and stock prices.

[IronManForever]

I dont want to download Java; Solaris all over again.

[chandru.in]

Originally Posted by desiibond

they should not have released x86 version of solaris and they should not have made solaris opensource.

Solaris was anyway free for download and use even before, so open-sourcing will only help them gain more contributors.

The real problem is, Sun being a high-end server company, it is facing a hostile economic environment in US. That is the cause for all the bad news. Still last quarter did have profits. Also, in emerging markets (aka BRIC), it's market is rising. Especially their market in India is doing really well.

Yes they have fallen a lot after .com bust. But a sale of Sun, I don't think it will happen anytime soon.