Ok, so Sun is still losing money, and their share of the server market is dropping (even as overall server sales grow). They've been laying people off in droves since 2002. So what do they do? They spend $4.1B of their $7.4B cash pile on StorageTek - a slow growth backup company. I'm not the only one saying huh??

"We do question the rationale of a transaction which reduces Sun's cash hoard by 40 percent and does nothing to reignite revenue growth or profitability," Prudential analyst Steve Fortuna said in a report Thursday. "We would rather have seen the company buy back a billion shares and fire 10,000 people."

Ouch. This deal really makes no sense to me. Actually, it looks like McNealy is channeling that all around business genius, Bill Lyons. He just has more cash to waste...