IBM is in talks to buy Sun Microsystems Inc for at least $6.5 billion, The Wall Street Journal reported, in a deal that could bolster their computer server products against rivals such as Hewlett-Packard Co.
Sun, which was not immediately available for comment, has long been cited as a takeover target for International Business Machines Corp, HP, Dell Inc or Cisco Systems Inc, which this week unveiled its plan to start making blade servers that power corporate computer networks.
But bankers and analysts have also said the challenge of valuing Sun's intertwined software, hardware and services businesses could put off potential buyers. The company has never fully recovered from the dot-com bubble burst in the early 2000s, when demand for its high-end servers cratered.
Sun, which was not immediately available for comment, has long been cited as a takeover target for International Business Machines Corp, HP, Dell Inc or Cisco Systems Inc, which this week unveiled its plan to start making blade servers that power corporate computer networks.
But bankers and analysts have also said the challenge of valuing Sun's intertwined software, hardware and services businesses could put off potential buyers. The company has never fully recovered from the dot-com bubble burst in the early 2000s, when demand for its high-end servers cratered.
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