Copyright 2006 PJM Consulting
I was reading recently about the proposed merger between StorageTek and Sun. Two major technology companies, one making a comeback from bankruptcy and the other mired in a long slump, with several years of negative predictions about their business prospects.
I am not an insider and dont know the specific details of this merger. It seems to make at least some sense, as Sun has not historically been strong in Storage, which is StorageTeks forte. Sun has been Private Labeling storage systems from a company here in San Diego for the past several years (probably doesnt bode well for that supplier!). So having Storage Technology in-house could be a big plus for Sun. The analysts have generally panned this deal, however. They dont think it does anything to reignite Suns growth, which is what theyre looking for. I dont have enough solid knowledge of the situation to decide whether its a good idea from a strategic perspective or not.
What I do know is that it probably will fail.
ODDS AGAINST IT
Predicting failure is a pretty big statement for someone with limited knowledge of the specifics of the deal. But I can make that statement
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