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The rise of the Blue Sun: IBM and Sun

Mar 18, 2009, 17:02 (2 Talkback[s])
(Other stories by Steven J. Vaughan-Nichols)

[ Thanks to Steven J. Vaughan-Nichols for this link. ]

"Of course, in deals like this, there's many a slip between the cup and the lip. Still, I, for one, am sure that the deal will go through. While Sun CEO Jonathan Schwartz recently pointed out Sun's strong points--"over $3 billion in cash, and a nearly two decade history of generating positive cash flow. We've also got a set of technologies and people that continue to play an ever more vital role in the economy."--he didn't really address Sun's serious problems.

"What Schwartz didn't mention was that Sun had laid off from 15% to 18% of its employees in November 2008, that's between 5,000 and 6,000 employees, after a quarter which saw a $1.68 billion quarterly loss. Even before the economy started its nose-dive, Sun had been bleeding red-ink for several quarters."

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