IBM may acquire Sun Microsystems in $ 7 Billion

IBM may acquire Sun Microsystems, a longtime rival in the computer server and software markets, for nearly $7 billion. The two companies have been negotiating for weeks.
IBM is offering $9.50 a share, down from a bid of $10 a share. Even at $9.50 a share, the deal would value Sun at close to $7 billion. It is close to a 100% premium based on Sun's value before rumours of an acquisition spread last month. Representatives of IBM and Sun declined to comment. People familiar with the negotiations say a final agreement could be announced Friday, although it is more likely to be made public next week. IBM's board has already approved the deal, they said. IBM's acquisition of Sun would disrupt that long partnership with Oracle. IBM could also undercut Oracle by more actively promoting the free MySQL software, which has become the most popular database software with Internet companies.

Finally the deal is called off by IBM and Sun Microsystems