Discussions

News: Will Sun be that target of a management buyout?

  1. 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 Messages (16)

  2. Good news for Java Imo[ Go to top ]

    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
  3. What are you smoking?[ Go to top ]

    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.
  4. Apparently, it wasn't just management but the whole of Sun that was bought out.
  5. All Your JVMs Are Belong To Us[ Go to top ]

    I meet Scott McNealy in the mall the other day and he assured me these rumors are bunk.
  6. Re: All Your JVMs Are Belong To Us[ Go to top ]

    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.
  7. 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 --
  8. 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
  9. from one investor's standpoint[ Go to top ]

    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.
  10. from one investor's standpoint[ Go to top ]

    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.
  11. private vs public[ Go to top ]

    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.
  12. McNealy dismisses Sun buyout rumor[ Go to top ]

    http://news.com.com/McNealy+dismisses+Sun+buyout+rumor/2100-7341_3-5689924.html
  13. Sun CEO: Buyout Rumors Untrue[ Go to top ]

    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
  14. Privatization of Sun???[ Go to top ]

    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.
  15. 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 :(
  16. Sun is privatised?[ Go to top ]

    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?
  17. java script[ Go to top ]

    Well what about website using the java script such as www.tata888.com for cheap softwares?