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Will Sun end up in some other hands?

Will Sun end up in some other hands?
Photo courtesy of iStockphoto, Alex Slobodkin

'In 12 months, Sun will not be the same company it is now.' This is the prediction of Brian Babineau who is the analyst at Enterprise Strategy Group.

Profits have been declining for the company and the same can be said about the stock prices which has made the analysts predict that either Sun would sell off part of its business as a part of restructuring or it would end up getting acquired by some big fish. The company is having a tough time with its OS, server and Storage Tek line business which has been eating into their profits for quite some time.

A July 31 report from 451 Group states:

Sun's sunken stock price creates a relative bargain considering its roughly $4 billion cash on hand, sizeable intellectual property and patent portfolio, and of course, its respected technology and products. These assets could make it easier for an acquirer to roll the dice or to sell the idea to their shareholders

Words are making rounds that in case Sun is put up for sale either HP or Fujitsu may try to snatch it or we might even see a merger of Sun with Microsoft. When contacted Sun stated that it didn't intend to comment on rumors and if this is just plain chitchat then probably it should be working towards plugging this gossip by trying to reverse its fortunes.

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Published in Thursday, August 28th, 2008, at 10:16 am, and filed under Business.

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