IBM'S buyout of Sun is just good sense: Well, unless the government bureaucrats decide IBM is "Too Big To Fail."
[John K. Matyi] IBM is preparing for this buyout (which is all over the business channels this morning) while at the same time laying off considerable staff. To be fair, Sun has also been laying off "thousands." So it may be that this is really the market at its best. As it points out in this article, many of the servers in many of the companies will be replaced in the near future as they were purchased back in the 1990's.
My question is what will happen when the Obama administration decides that IBM/Sun "is too big to fail" and they take over the company and fire all the people that have made this company great. Is it not this fear by many companies in this country that will now drive them off shore to an environment that is both safer and friendlier to big business. I applaud IBM for taking the risk of buying another company that will increase their market share.
As long as the government stays out of this, including all of the so-called regulators, we will see a better and stronger IBM. If not, then this will again be in the news, but for all the wrong reasons. Let us hope that the Free Market will make the decisions here, not government bureaucrats that have never even run a successful lemonade stand.
My personal advice: Hold onto your Confederate money, the South shall rise again [Huh?]. OK, at least enjoy this video:
A Photostory by a student in China
IBM'S buyout of Sun is just good sense: analysts
By Jim Finkle - Analysis
BOSTON (Reuters) - For IBM, buying Sun Microsystems Inc makes a lot of good business sense: It removes a competitor, strengthens IBM against rival Hewlett-Packard and picks up on the cheap the intellectual property of one of Silicon Valley's most respected companies.
While it may be tough to persuade regulators on both sides of the Atlantic to approve the deal, and melding easy-going Sun with more conservative Big Blue will be a challenge, many analysts believe IBM has a good chance of doing just that.
"This is a very difficult environment in which to gain market share. That's probably an easier way than putting more sales people on the ground," said Pat Becker Jr, chief investment officer for Becker Capital, which manages about $1.6 billion and holds a small number of shares in IBM.
I highly recommend that you read the entire article here.
Comments