Saturday, November 29, 2008
Silicon Valley has a new parlour game: what's going to happen to Sun after the cuts? Rumours suggest it will merge with EMC, that HP or IBM will take it over, that Fujitsu will buy its hardware business, or even that the StorageTek storage business unit will be spun off. Do Sun's leaders want to be redeemed or to retire?
The company has bit the downsizing bullet and announced up to 6000 job losses following on from a $1.7bn quarterly loss.
Its made its big open storage announcement and there are server announcements coming too. But investors have seemingly discounted these moves as the company's share price is at $3.17 with its market capitalisation at $2.34bn, about the same as its cash pile and so effectively rendering the company worthless. This is lower than the $3.62 stock price before the cuts were announced, and before a raft of technology and product announcements like the open storage one.