Good freakin' Lord. Why not just lay everyone off while they're at it? History may or may not show Sun's acquisition of StorageTek to ultimately have been a good move. I think it's potentially a significant win but won't be easy to pull off. (See my comments at IBD and ZDnet. My Illuminata colleagues have also posted in a similar vein.) But, whatever the doubts and concerns about the StorageTek approach, getting rid of all Sun's employees hardly seems a viable recovery strategy either.
"We do question the rationale of a transaction which reduces Sun's cash hoard by 40 percent, and does nothing to re-ignite revenue growth or profitability," Steven Fortuna, an analyst at Prudential Equity Group, said in a research note. "We would rather have seen the company buy back a billion shares and fire 10,000 people."
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