Sun’s Shares Crash 23%; Dark Days Ahead

Shares of Sun Microsystems fell nearly 23% to $6.56 today on the Nasdaq after its acquisition by IBM fell through.

The share price decline is said to be the biggest drop since July 2002.

We’ve said this several times – Sun Microsystems has no future, the company ought to be shut down, the schmucks kicked out and the money returned to shareholders.

Although the server and software company has been in a death spiral for years with falling revenues and losses being the order of the day, our sound advice fell on deaf ears.

Sun Microsystems
Dark Shadows Over Sun

The dummkopfs at Sun tried every trick in the book (except a brain-transplant, which they should have) – they changed their management, they fired employees in the thousands and they tinkered with their products.

But nothing worked.

And the company continued to lose ground to IBM and HP in Sun’s bread-and-butter servers. 

Finally, somebody heard our prayers about the Sick Man of Silicon Valley, and decided to put this pathetic company out if its misery – Sun started shopping itself around.

But there were few takers save IBM, which was supposed to pick up the carcass of Sun for $7 billion.

Alas, that proposed deal too fell through Sunday after IBM reduced its offer from $9.55 per share to $9.40 per share. 

What next for Sun? The company has few good options left.

Unless an acquisition happens in the near future, Sun will see its share price erode further, customers disappear because of the uncertainty over its existence and the company will eventually have to give up the ghost.

Dark clouds are hovering over Sun. Don’t say we didn’t warn you.

One Response to "Sun’s Shares Crash 23%; Dark Days Ahead"

  1. kaleshgopi   April 7, 2009 at 2:53 am

    if sun msystems die then where can i get java, virtualbox, netbeans? Responds:

    We have to assume that whoever acquires Sun will continue with those technologies if there’s a market demand.

    According to Wiki,

    As of May 2007, in compliance with the specifications of the Java Community Process, Sun made available most of their Java technologies as free software under the GNU General Public License. Others have also developed alternative implementations of these Sun technologies, such as the GNU Compiler for Java and GNU Classpath.

    NetBeans IDE is said to have been open-sourced since June 2000. (Source: Wiki)

    As for virtualbox, isn’t VMWare the marketleader in virtualization?

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