Rumors of IBM taking over Sun

The stock price of Sun Microsystems is up by more than 100%. Blomberg is reporting this is on rumors that IBM is looking to acquire Sun.

They add

The acquisition of Sun, which would be the biggest in IBM’s history, would help the company widen its lead over Hewlett- Packard Co. in the $53.1 billion market for servers, which run networks and Web sites.

But given that the server market is shrinking while the Cloud Computing looks like the next big thing and with IBM’s grid computing not going anywhere. This looks like more a New Technology play rather than to acquire server market share.

Update: Well the deal is off! I think this clears the way for Cisco to make a bid.

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