IBM was trying to takeover Sun Microsystems a couple of weeks ago but failed as the company rejected the buyout offer. Today news is all over the web that Sun has been acquired, no by IBM but by Oracle in a deal worth $7.4 billion.
Oracle said it will buy Sun common stock for $9.50 per share in cash, a 42% premium from Friday's closing price of $6.69.
After accounting for Sun's cash and debt, the deal's value is $5.6 billion, the companies said.
The announcement comes after Sun reportedly rejected a $7 billion buyout offer from IBM (IBM, Fortune 500) earlier this month.
The Redwood Shores, Calif.-based Oracle said it expects Sun to contribute over $1.5 billion to its operating profit this year, and over $2 billion in the second year.