IBM has withdrawn their offer from Sun Microsystems. The whole event was pretty similar to what happened with Microsoft’s offer for Yahoo! IBM made an offer to Sun, Sun held out for more, and eventually both companies walked away from the table.
Currently Sun’s market cap is about $5 billion.
If the deal did go through, IBM would have become the biggest supplier of Unix-based servers. IBM would have also became a bigger competitor against HP and Oracle.
About 100 of IBM’s lawyers worked on putting the offer together and putting together the due diligence. After finding out about some of the antitrust concerns and contracts that are already put in place with Sun, IBM reduced the acquisition price.
After Sun refused the lower price, the talks ended. When IBM made the offer, Sun had to exclusively deal with only them. Now that the offer is off the table, Sun may shop around with rivals such as HP and Cisco.