Sun and Rackable?

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It’s Friday, it’s sunny and 81 degrees here at Studio H, and reader/contributor Chris Aycock is passing on just the rumor I need to round out my week:

Rackable Systems’  shares shot up Thursday as the server maker became the latest company to get swept up in a frenzy of speculation about acquisitions in the tech sector.

“There’s a rumor around — strictly a rumor — that Sun is going to buy them,” says Chirag Vasavada, a hardware analyst with T. Rowe Price. Rackable has been a subject of buyout rumors in the past, although Dell has usually been the rumored acquirer, notes Vasavada.

Why? Well, M$oft and Yahoo! accounted for 34% and 26% of Rackable’s 2006 $360M in sales. And Sun is trying to get in good with Internet companies, too.

Sun declines to confirm or deny; Rackable’s shares were up from $16.50 to around $18 this week (5 day view).


  1. […] Rackable’s most recent mention in this space was speculation about rumors of a possible acquisition by Sun and Concentro, Rackable’s answer to Sun’s Blackbox. […]

  2. […] You may recall that Rackable announced in April that it lost $10.2M US in Q1 triggered by a loss of business with Yahoo!, Microsoft, and Amazon to competitors IBM, HP, Sun, and Dell. Earlier this year Rackable also announced it’s own containerized computing solution to compete with Sun’s, and was the subject of acquisition rumors with Sun that haven’t panned out. […]

  3. […] the last time I posted a Sun acquisition rumor, it turned out to be way wrong. But, hey, I learn […]

  4. […] Back in March rumors were circulating that Sun was considering acquisition of Rackable. If they were, it didn’t happen. […]


  1. Agree, Sun is imminently announcing thhe acquisition.