OStatic

I can safely say when I covered the speculation that IBM and Sun were wrapping up the finer points of the acquisition Friday, I figured that if there was anything left to say come Monday, it would deal with idiosyncracies of the agreed-upon terms. Even though the announcement is imminent reports were not officially sanctioned by IBM or Sun, there was no reason to believe the sources were dishonest about the information they gave. It still doesn't seem there was dishonesty, or that these sources made wildly off-base assumptions about what was to come. It seemed as though IBM's purchase of Sun Microsystems was set to proceed, until late Saturday evening, when IBM and Sun broke off negotiations, according to Bloomberg.

There had been much debate about how an IBM acquisition would affect Sun's open source efforts. As those questions move even further into the hypothetical realm, far more troubling questions loom about Sun's next potential buyer -- or its choice to weather the storm on its own.

The Wall Street Journal is reporting that IBM is currently in talks to purchase Sun Microsystems. The acquisition is not a foregone conclusion, due in part to the very different corporate cultures in the companies. Some believe this tension will ultimately help both companies succeed, if they can just get through the talks.

The acquisition could take place as early as this week, and it is speculated that IBM could pay over $6.5 billion for Sun. Sun's recent financials have been more than a little disappointing, and this purchase would take a toll on IBM's profits in the short term. Business isn't solely about the short term, however, and I can't help but agree with the WSJ, CNet's Matt Asay, and at least a few of those involved in the talks that this acquisition would be a positive one for IBM, Sun, and open source in general.

Today Fixstars Corporation announced it has acquired Terra Soft Solutions, the company behind Yellow Dog Linux. Fixstars has created a new subsidiary to manage the Terra Soft employees, products, and offices.

Fixstars provides application development and optimization tools for Cell Broadband Engine multi-core processors. This makes the acquisition of Terra Soft fitting from the historical standpoint, and promising for Yellow Dog's future.