Welcome!

Eclipse Authors: Pat Romanski, Elizabeth White, Liz McMillan, David H Deans, JP Morgenthal

Related Topics: Open Source Cloud

Open Source Cloud: Article

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

Comments (10) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Brad Hutchings 05/17/05 02:02:00 AM EDT

If my business were playing in markets that SysCon covers, I would be more than happy to advertise on pages with Maureen's stories. Think of the advantage. Instantaneously, you get rid of all the potential whiney open source fanatics via boycot. No need to waste your time with "customers" who are just going to be high cost anyway. As a bonus, you get material with a sense of humor. Ever notice how people with money and control tend to be funnier than geeks who sit in closets all day?

Attention Sys-Con 05/10/05 05:44:45 PM EDT

While you made a correct step in removing the article concerning PJ, and dumping O'Gara on her wrinkled ass, you're not finished.

1- Everything O'Gara must disappear.
2- A public front-page apology to PJ for allowing publication of the article.

Only until those are done will we believe you are serious.

Matthew 05/10/05 09:59:12 AM EDT

I find it fascinating that the people posting feedback do more research into the story than the "journalist" writing it. That says something about Maureen's skill as a journalist, doesn't it? Random people surfing the web are better at constructing an article than she is, that a simple Google search reveals relevant information about a story that PJ's Stalker can't be bothered with.

Warning 05/10/05 09:57:09 AM EDT

Maureen O'Gara is a bought and paid-for SCO whore. Even if a tiny grain of truth manages to appear in any of her writing (you know, the rare exception to the rule), better to get your news elsewhere.

Sys-Con, we await the complete removal of O'Gara from all your sites, as well as a public front-page apology for the slanderous stalking drivel you allowed her to post about PJ.

The One Who Knows 05/10/05 09:40:15 AM EDT

The only reason anyone may read an article by Ms. O'Gara is exactly the same people go to see a freak show. I cannot imgine buying from an advertiser who places his ad next to her drivel. If you want me to read anything on this site, please get rid of the "journalist".

stats_for_all 05/10/05 09:38:42 AM EDT

The "Inside Business Week" columnist who floated the story was Gene Marcial. He also was responsible for quoting Jonathan Cohen, of JHC Capital, on an "impending" buyout of SCOX.

Cohen has business ties to a hedge fund run by Steve Novak, Palladio Capital. It is speculatively possible that the same criminals pumping SCOX are also responsible for this rumor on SUNW

Gene G. Marcial is the same journalist who featured Cohen investments in SCOX (June 23, 03), RCOM, TREE and Verity (8/5/02). These articles are cookie cutters, they report rumors of imminent buy-outs, smart mutual accumulation etc.
Cohen may also be the anonymous "money pro" in the MOBI pump from Sept 2004, with the prerequisite accompaning Marcial article. Cohen's fund and a private hedge he operates bought MOBI positions just prior to the appearance of the article. IBM was the rumored buy-out partner for MOBI.

In summary, the 2003 CYBS rumor is the work of a interested party who has used an identical MO to support the price of stocks within his portfolio and curry favor from friends during a crucial fund raising period.

SCOX rumor: www.businessweekcom/magazine/content/03_25/b3838120_mz027.htm
VRTY rumor: www.businessweekeuropecom/magazine/content/02_31/b3794141.htm
MOBI rumor: www.businessweekcom/magazine/content/04_38/b3900140_mz027.htm
RCOM rumor: www.businessweekcom/magazine/ content/01_51/b3762147.htm
TREE rumor: www.businessweekcom/magazine/content/02_05/b3768123.htm

Other rumors: moneycentral.msncom/cnbc/tv/stockpicks/ spsummary.asp?id=249&name=Jonathan+Cohen

OGara Sucks 05/10/05 09:31:28 AM EDT

Her shameful 'expose' is now gone from the site. I await the coming lawsuit from PJ.

Warning 05/10/05 09:02:30 AM EDT

Maureen O'Gara is a bought and paid-for SCO whore. Even if a tiny grain of truth manages to appear in any of her writing (you know, the rare exception to the rule), better to get your news elsewhere.

Sys-Con, we await the complete removal of O'Gara from all your sites, as well as a public front-page apology for the slanderous stalking drivel you allowed her to post.

Donald Hsu 05/10/05 06:50:32 AM EDT

Maureen is right. The problem with Sun is the leadership. Times have changed. You need a new CEO. Can Schwartz do the job? No one knows. The better alternative is to sell Sun to Oracle. Oracle has a markt cap $60 bn and Sun is about $13 bn. Oracle 10i is written in Java. If the two firms combine, there is plenty of synergy. It is a win win situation for both.

Warning 05/10/05 05:09:16 AM EDT

Maureen O'Gara is a bought and paid-for SCO whore. Even if a tiny grain of truth manages to appear in any of her writing (you know, the rare exception to the rule), better to get your news elsewhere.

Sys-Con approves of stalking, and even happily posts "news" written by a stalker. Is this the kind of place you want to get your news from?

@ThingsExpo Stories
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things’). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing? IoT is not about the devices, it’s about the data consumed and generated. The devices are tools, mechanisms, conduits. In his session at Internet of Things at Cloud Expo | DXWor...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.