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Will Sun be that target of a management buyout?

Posted by: Karl Avedal on April 29, 2005 DIGG
A report in Business Week's Inside Wall Street column says that CEO Scott McNealy and Silver Lake Partners are considering taking Sun private and the Sun stock is rallying in pre-market action as a result. The report cited a hedge fund manager close to McNealy as the source, who said:
The idea is to shrink Sun by selling assets, bolster its core hardware, software, and service businesses, and go public again.
If this is just a rumour it certainly wouldn't be the first one, but if it is true, what do you think it would mean for Sun and for Java? Would it give Sun more financial flexibility when they no longer have to please the stock market every quarter? Could it be negative?

Threaded replies

·  Will Sun be that target of a management buyout? by Karl Avedal on Fri Apr 29 09:11:13 EDT 2005
  ·  Good news for Java Imo by Vic Cekvenich on Fri Apr 29 10:09:23 EDT 2005
    ·  What are you smoking? by Joe M. on Wed May 04 04:24:12 EDT 2005
    ·  Re: Good news for Java Imo by augustientje bloem on Fri May 15 19:02:43 EDT 2009
  ·  All Your JVMs Are Belong To Us by M J on Fri Apr 29 10:24:12 EDT 2005
    ·  Re: All Your JVMs Are Belong To Us by Jeryl Cook on Fri Jun 22 11:47:16 EDT 2007
  ·  Will Sun be that target of a management buyout? by Mitch De Felice on Fri Apr 29 10:28:57 EDT 2005
    ·  Will Sun be that target of a management buyout? by Vic Cekvenich on Fri Apr 29 11:07:06 EDT 2005
  ·  from one investor's standpoint by jim herber on Fri Apr 29 11:44:32 EDT 2005
    ·  from one investor's standpoint by Wille Faler on Sat Apr 30 06:21:00 EDT 2005
      ·  private vs public by jim herber on Sat Apr 30 10:47:22 EDT 2005
  ·  McNealy dismisses Sun buyout rumor by Bob Treacy on Fri Apr 29 12:49:34 EDT 2005
  ·  Sun CEO: Buyout Rumors Untrue by Mrinal Kanti on Sat Apr 30 11:52:54 EDT 2005
  ·  Privatization of Sun??? by Alfred Doeblin on Mon May 02 09:10:22 EDT 2005
  ·  Is it about Sun? Java? the Hardware? The Management? by Hanasaki JiJi on Wed Dec 27 20:53:57 EST 2006
  ·  Sun is privatised? by Jode Adith on Tue Jun 05 03:30:07 EDT 2007
    ·  java script by Jode Adith on Tue Jun 05 03:32:55 EDT 2007
  Message #168470 Post reply Post reply Post reply Go to top Go to top Go to top

Good news for Java Imo

Posted by: Vic Cekvenich on April 29, 2005 in response to Message #168463
So far, under Sun banner, Java has had problems, including desktop deployment ( 4 year old scarry text bug), EJB ("who was responsible" as per TSS conference), JSF, etc.

The GNU, Kaffe and etc. that open source Java and let me run it on ?nix PPC for example will solve it, including JNLP.... eventually.

But... if Sun was to be bought out by Fujitsu, or something else, then we can compete against Flash and XAML and Mono much faster.
I only want to write best applications possible in any platform.

Sun had it's chance, the opening could be too little to soon.
.V

  Message #168475 Post reply Post reply Post reply Go to top Go to top Go to top

All Your JVMs Are Belong To Us

Posted by: M J on April 29, 2005 in response to Message #168463
I meet Scott McNealy in the mall the other day and he assured me these rumors are bunk.

  Message #168482 Post reply Post reply Post reply Go to top Go to top Go to top

Will Sun be that target of a management buyout?

Posted by: Mitch De Felice on April 29, 2005 in response to Message #168463
There's this saying in Texas: You know when the best time to tell your spouse that your love them? - Be for someone else does! --- You know when the best time to buy back your company, before someone else does!

Yesterday (4/28/05) Sun closed at $3.44 a share. Now if I wanted to own Java, picking it up around $5.00 a share could really be a good deal. Especially, if I wanted to kill it off!

-- Mitch --

  Message #168489 Post reply Post reply Post reply Go to top Go to top Go to top

Will Sun be that target of a management buyout?

Posted by: Vic Cekvenich on April 29, 2005 in response to Message #168482
Yesterday (4/28/05) Sun closed at $3.44 a share.


As per article, $2.50 of that price is cash.
So Sun is ongoing revenue is ~$1?
Of the ongoing revenue... part is payments from M$.


IMPORTANT:
Java != Sun.

There is open source market share that is like 8 times the size of M$. But lets ignore that:

- BEA JRockit has 1.5 for Linux and Widnoze
- Apple has 1.5 (today) for OSX
- IBM has JDK for PPC.

Neither I not one of my clients has Sun JDK anywhere. In production I use 64bit JVM from JRockit on Linux for 8 gig machines, becuase they have fast parralell GC.

For people that think Java == Sun... I guess you are now .NET.

Now, I would love to help Sun's Java programmers, like S Violet, etc. But do they want to work for that organization, that had admins and lawyers in charge aparently?
How to help Java???

Open sourced parts of Java are not in danger.
May the soruce be w/ you, in case of business plan changes.

.V

  Message #168496 Post reply Post reply Post reply Go to top Go to top Go to top

from one investor's standpoint

Posted by: jim herber on April 29, 2005 in response to Message #168463
the market valued sun at 12B as of yesterday. they have 7.5B in net tangible assets. they are gaining traction with their opteron based x86 servers. i'm not sure what additional business units they will sell off, but they should be profitable going forward according to analysts estimates. the piece of information that caught my eye when i looked at them was intangibles and potential. if you believe intangibles (reputation, trademarks, channels, partnerships/agreements, mindshare, patents, etc...) are > (12B - 7.5B) then the company is undervalued going forward.

as for java development and products, a private company is not accountable to shareholders. i don't have any numbers, but i would imagine java only adds red to the bottom line. sun is in a unique position where they have some great technology ready to roll (n1/multi-way opteron servers) but, the financial look weak because strategy changes are just coming to fruition and the undervalued intangibles. i would assume after a buyout the management and board could be replaced? thus, a buyout would allow someone to chop up the company selling the profitable parts at premium prices, and perhaps letting the intangibles and up-coming technology go for ipo after a substantial marketing campain paid for by media publicity.

  Message #168511 Post reply Post reply Post reply Go to top Go to top Go to top

McNealy dismisses Sun buyout rumor

Posted by: Bob Treacy on April 29, 2005 in response to Message #168463
http://news.com.com/McNealy+dismisses+Sun+buyout+rumor/2100-7341_3-5689924.html

  Message #168599 Post reply Post reply Post reply Go to top Go to top Go to top

from one investor's standpoint

Posted by: Wille Faler on April 30, 2005 in response to Message #168496
a private company is not accountable to shareholders.

Is not what to shareholders?! :)
A private company is accountable to its shareholders, just like ANY company, it's just that a private company tends to have fewer shareholders than a publicly traded one.

I think the general sentiment probably is that a private company is perhaps HELD more accountable by it's shareholders, as private companies tend to have more active shareholders and less inactive institutions holding their shares.

  Message #168620 Post reply Post reply Post reply Go to top Go to top Go to top

private vs public

Posted by: jim herber on April 30, 2005 in response to Message #168599
a private company is not accountable to shareholders.
Is not what to shareholders?! :)A private company is accountable to its shareholders, just like ANY company, it's just that a private company tends to have fewer shareholders than a publicly traded one.I think the general sentiment probably is that a private company is perhaps HELD more accountable by it's shareholders, as private companies tend to have more active shareholders and less inactive institutions holding their shares.

you are absolutely correct. i should have said a private company is less accountable to its shareholders. less accountable in terms of modus operandi because: (1) the accounting methodology is generally less rigorous, and (2) the private equity mechanism makes it harder for shareholders of a private firm to liquidate their equity outside of the agreement. a public co. shareholder gets accurate quarterly results, and can liquidate anytime, for any reason.

  Message #168629 Post reply Post reply Post reply Go to top Go to top Go to top

Sun CEO: Buyout Rumors Untrue

Posted by: Mrinal Kanti on April 30, 2005 in response to Message #168463
Now check out this:

http://www.betanews.com/article/Sun_CEO_Buyout_Rumors_Untrue/1114791346

These guys claim that McNealy said the rumor was part of a scheme to raise the stock price of the company.

- Mrinal

  Message #168745 Post reply Post reply Post reply Go to top Go to top Go to top

Privatization of Sun???

Posted by: Alfred Doeblin on May 02, 2005 in response to Message #168463
How would privatization of Sun affect Java?
Didn't know Sun was owned by the state; it must be indeed one of the few public companies remaining in the usa.

  Message #169046 Post reply Post reply Post reply Go to top Go to top Go to top

What are you smoking?

Posted by: Joe M. on May 04, 2005 in response to Message #168470
So far, under Sun banner, Java has had problems, including desktop deployment ( 4 year old scarry text bug), EJB ("who was responsible" as per TSS conference), JSF, etc. The GNU, Kaffe and etc. that open source Java and let me run it on ?nix PPC for example will solve it, including JNLP.... eventually.But... if Sun was to be bought out by Fujitsu, or something else, then we can compete against Flash and XAML and Mono much faster. I only want to write best applications possible in any platform.Sun had it's chance, the opening could be too little to soon..V
Vic. you are spouting utter nonsense.

  Message #224628 Post reply Post reply Post reply Go to top Go to top Go to top

Is it about Sun? Java? the Hardware? The Management?

Posted by: Hanasaki JiJi on December 27, 2006 in response to Message #168463
The postings started out discussing taking Sun private and the many Many buyout rumors. Hardware has become faster, cheaper and more universal. Case in point: Apple went Intel and PCI. Oracle, BEA, IBM, JBoss, Spring and others have done very well with Java based server products and consulting. Sun has done pretty well too; however, these others have, collectively, eaten Sun's lunch because of the original Technology oriented altruistic nature of Sun's efforts for Java - that made very little revenue :(

  Message #234014 Post reply Post reply Post reply Go to top Go to top Go to top

Sun is privatised?

Posted by: Jode Adith on June 05, 2007 in response to Message #168463
This is very surprising news as I personally thought Sun is a a huge company with very good finance but privatised that's one thing to hear.

Well personally I believe that would not make instant effect to java, however it might lead to better thing someday as they have better softwares development

what do you think all techies?

  Message #234015 Post reply Post reply Post reply Go to top Go to top Go to top

java script

Posted by: Jode Adith on June 05, 2007 in response to Message #234014
Well what about website using the java script such as www.tata888.com for cheap softwares?

  Message #235014 Post reply Post reply Post reply Go to top Go to top Go to top

Re: All Your JVMs Are Belong To Us

Posted by: Jeryl Cook on June 22, 2007 in response to Message #168475
I meet Scott McNealy in the mall the other day and he assured me these rumors are bunk.



was that serious comment? LOL.

I met Bush while at lunch in D.C , he assured me the rumors about Iraq are false as well.

  Message #308910 Post reply Post reply Post reply Go to top Go to top Go to top

Re: Good news for Java Imo

Posted by: augustientje bloem on May 15, 2009 in response to Message #168470
Apparently, it wasn't just management but the whole of Sun that was bought out.

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