Sun stands by its man
Sun CEO Jonathan Schwartz's job appears safe for now following the collapse of negotiations with IBM.
(Credit: Stephen Shankland/CNET)After taking a beating in the stock market Monday following the reported collapse of a merger deal with IBM, Sun Microsystems stood by its leadership team.
Reuters reported that Sun declined to confirm the breakdown in negotiations, but did say "Sun is committed to its leadership team, growth strategy and building value for its shareholders." Speculation had been building that CEO Jonathan Schwartz was in trouble after The Wall Street Journal reported that Chairman Scott McNealy had quashed a possible deal with IBM over Schwartz's objections.
IBM and Sun had been talking for several weeks about a merger, according to reports, but talks broke down Sunday over the price to be paid for one of Silicon Valley's most iconic companies. Sun has struggled in recent years to translate its success during the last decade to the current period.
Sun's stock finished down more than 22 percent to close at $6.56 Monday, after rejecting IBM's last reported offer of $9.40 for the company's shares.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 
- by t8 April 6, 2009 5:07 PM PDT
- Sun need to get into Cloud Computing and gain some impressive market share and revenue from it. They need to do something, or they will lose more stock holder value. They seem to have all the pieces for it, so they just need to execute it well and with what money they have left. Failing that, then sell.
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