CNN/Money 
News > Technology
graphic
Microsoft to pay Sun $1.6B
Settlement resolves long-standing legal disputes between tech firms; Sun announces 3,300 job cuts.
April 2, 2004: 9:24 AM EST

NEW YORK (CNN/Money) - Microsoft will pay Sun Microsystems a total of $1.6 billion to settle a long-standing set of legal disputes, the companies announced Friday.

Meanwhile, Sun said it will cut 3,300 jobs and take a $475 million charge as it looks to cut costs and return to profitability. The company said it will spread the charge over several quarters, including $200 million in its third quarter.

Under the settlement, Microsoft said it will pay Sun $700 million to resolve antitrust issues and $900 million to resolve patent litigation.

Sun and Microsoft have also agreed to pay royalties to use each other's technology, with Microsoft making an up-front payment of $350 million and Sun making payments when this technology is incorporated into its server products.

YOUR E-MAIL ALERTS
Sun Microsystems Incorporated
Microsoft Corporation
Layoffs and Downsizing
Patents, Copyright and Trademarks

Sun (SUNW: Research, Estimates) also said it expects a net third-quarter loss of 23 to 25 cents a share on revenue of $2.65 billion. The loss will include approximately $200 million for restructuring of work force and real estate.

Excluding the restructuring charge, Sun sees an operating loss of 6 to 8 cents a share. In September, Sun said it expected an operating loss of 7 to 10 cents a share.

In a separate announcement, Sun said that it was promoting Jonathan Schwartz, who had been Sun's executive vice president for software, to president and chief operating officer. The COO position had been vacant since Ed Zander, now the chairman and CEO of Motorola, left Sun in 2002.

In pre-market trading Friday, shares of Sun were up nearly 9 percent while shares of Microsoft rose 1.7 percent.  Top of page




  More on TECHNOLOGY
Honda teams up with GM on self-driving cars
The internet industry is suing California over its net neutrality law
Bumble to expand to India with the help of actress Priyanka Chopra
  TODAY'S TOP STORIES
7 things to know before the bell
SoftBank and Toyota want driverless cars to change the world
Aston Martin falls 5% in its London IPO




graphic graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.