Sun Microsystems in Talks to be bought by IBM

IBM is in talks to buy Sun Microsystems Inc, sources with knowledge of the matter said, a move that could bolster the technology giant against rivals in the high-end computer server market. With The Wall Street Journal reporting that IBM is offering to pay over six billion. shares of Sun Microsystems jumped 64 percent. If they reach a deal, it would be one of IBM’s largest acquisitions.

Sun Microsystems has been cited as a takeover target for companies such as IBM, Dell, HP. or Cisco. Bankers have said Sun has recently been searching for a buyer.

Hurt by pullbacks in corporate spending on technology due to the weak global economy, these five companies all posted declines in their fourth-quarter server revenue, IBM’s interest in Sun may signal a new wave of acquisitions in the data center market as companies strive to provide more comprehensive services to their customers.