The Hindu : Business : Microsoft makes $1.6 b peace with Sun

Online edition of India's National Newspaper
Sunday, Apr 04, 2004

Business

Business

Microsoft makes $1.6 b peace with Sun

WASHINGTON, APRIL 3. High-tech rivals Microsoft and Sun Microsystems have buried the hatchet, announcing Microsoft would pay $1.6 billion to settle antitrust and patent disputes.

The deal between the long-time bitter rivals yesterday came in conjunction with the announcement of a broad ten-year agreement on technical cooperation which could help lift Sun out of its recent slump.

The peace deal marks a major shift in the tech landscape as Sun, a major maker of software and servers, has been one of Microsoft's fiercest critics and a force in the antitrust actions against Bill Gates' firm.

Under the settlement, Microsoft will pay $700 million to resolve pending antitrust issues and $900 million to resolve patent issues. "Our customers said, `Stop the noise and start the collaboration,'" said Scott McNealy, Chairman and Chief Executive Officer, Sun, at a news conference in San Francisco with Microsoft CEO, Steve Ballmer.

"This is a good idea today, and it was a good idea 12 months ago," Mr. Ballmer said. "The fact is it presents a new opportunity to go out and work on things that are customer driven".

Separately, Microsoft will make an up-front royalty payment of $350 million in a deal allowing for use of each other's technology and Sun will make payments when this technology is incorporated into its server products, the companies said.

AFP

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section

Microsoft makes $1.6 b peace with Sun

BHEL net up 38 p.c.

Renewable energy: cooperation with U.K.

International Clothing Bureau meet

Efforts to consolidate shares in TMB

Forex reserves exceed $110 b

Tatas sell stake in Tata Telecom to Avaya