Sun settles with Microsoft, announces layoffs
C|Net | at | by Mike
Sun Microsystems announced Friday that it has moved to a new phase of legal and technical cooperation with longtime foe Microsoft that will involve a payment of $1.95 billion to Sun. Sun also said Friday that it plans to cut 3,300 jobs after it issued an earnings warning.
Under the 10-year pact with Microsoft, the software company will pay Sun $700 million to resolve antitrust issues and $900 million to resolve patent issues, the companies said. The companies will pay royalties to use each other's technology; Microsoft is paying $350 million now, with Sun to make payments when it incorporates technology later.