This weekend IBM withdrew its $9M offer for Sun after the Sun board balked at their lower offer. From the NY Times article.
"After the legal review, I.B.M. shaved its offer Saturday from $9.55 a share, the proposal on the table late last week, to $9.40 a share, said one person familiar with the talks. The offer was presented to Sun’s board on Saturday, and the board balked. The Sun board did not reject the offer outright, but wanted certain guarantees that the I.B.M. side considered “onerous,” according to that person. Sun then said it would no longer abide by its exclusive negotiating agreement with I.B.M., a second person familiar with the discussions said. On Sunday, I.B.M.’s board decided to withdraw the offer."
Sun is now on their own to make their business model work which I think is a good thing. This gives more choice in the Unix market. Doing business with IBM would have ultimately failed anyway due to their drastically different way of doing business. Its good to see Sun able to walk away from the deal mostly unscathed. Now its time for the board and the executives to sit down and do their jobs to make Sun more profitable rather than looking for a quick payout.