Driving Technology Directions on Cloud Computing Platform

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McNealy and Schwartz Dismiss Rumor They'll Be Taking Sun Private

"Maybe Sun Should Be Slower with the Cold Water," Comments Maureen O'Gara

Quoting an unidentified hedge fund manager supposedly "close to McNealy" - well, maybe he was before the story hit - BusinessWeek caused a bit of a brouhaha last Friday when it said Sun was considering using its $7.5 billion stash to go private at $5-$5.50 a share with the help of LBO maven Silver Lake Partners - the place its ex-president Ed Zander retreated to before going to Motorola. The story said Sun would then shrink itself by selling assets, bolster its core product lines and go public again a la the great Silver Lake-engineered Seagate resurrection.

Sun rushed to deny it.

Throwing cold water on the notion, CEO Scott McNealy said, "Why would a supposedly credible rag like BusinessWeek quote an anonymous hedge fund guy on a totally unsubstantiated rumor designed to spike the stock price? I will bet this hedge guy is laughing his butt off that BusinessWeek printed this as he profits from the 42-cent rise in the price this morning."

Sun president and COO Jonathan Schwartz told the Wall Street Journal it was a "complete joke."

Considering the performance of Sun's stock, however, it would be irresponsible of Sun not to at least think of such a thing.

Meanwhile McNealy told the Spanish newspaper El Pais that Sun, which you'd think would be looking for somebody to buy it, is going to start making some more acquisitions. "We have made some small purchases," he told the paper, "and we are going to make some bigger ones which generate more revenue."

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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