International Business Machines Corporation (IBM) today is rumored to be buying out Sun Microsystems Inc. for $6.5 billion. This is 100% more than the closing price of Sun’s stock price of $4.97 on Tuesday. Upon the rumor hitting the press, Sun’s stock price jumped over 70% to about $8.84.
This acquisition would enhance IBM’s precense in Internet, data storage, and telecommunications. Sun has been contacting several technology companies to promote acquisition of their own company. Hewlett Packard declined the offer according to a source with Bloomberg.
About a year ago, Sun made a large acquisition themselves when they acquired MySQL for $1 billion.
More news to follow as this story develops.