Company:Cobalt Networks
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| Fate | Acquired by Sun Microsystems |
|---|---|
| Founded | 1996 |
| Founder | Vivek Mehra |
| Defunct | December 7, 2000 |
| Headquarters | Mountain View, California |
| Revenue |  $22 million (1999) |
 -$23 million (1999) | |
| Total assets | $151 million (1999) |
| Total equity | $130 million (1999) |
Number of employees | 140 (1999) |
| Footnotes / references [1] | |
Cobalt Networks was a maker of low-cost Linux-based servers and server appliances based in Mountain View, California. The company had 1,900 end user customers in more than 70 countries.[1]
During the dot-com bubble, the company had a market capitalization of $6 billion despite only $22 million in annual revenue.
In 2000, the company was acquired by Sun Microsystems and in December 2003, Sun shut down the Cobalt product line.[2]
Cobalt was considered a pioneering server appliance vendor, the first to market a 1 RU rackmounted server, and was credited by the founder of RLX Technologies as paving the way for blade servers.[2]
History
The company was founded in 1996 by Vivek Mehra as Cobalt Microserver. In June 1998, the company changed its name to Cobalt Networks, Inc.[3]
The company introduced products as follows:[1]
| Product | Launch date |
|---|---|
| Cobalt Qube | March 1998 |
| Cobalt Cache | July 1998 |
| Cobalt RaQ | September 1998 |
| Cobalt NAS | April 1999 |
| Cobalt Management Console | October 1999 |
On November 5, 1999, the company became a public company via an initial public offering. Its stock price rose as much as 618% above its $22/share initial price.[4]
On March 23, 2000, the company announced the acquisition of Chilisoft from Charlie Crystle for 1.15 million shares of Cobalt common stock, then valued at $69.9 million.[5][6]
In September 2000, Sun Microsystems announced the acquisition of the company for $2 billion in stock.[7] The acquisition was completed on December 7, 2000.
Many disgruntled engineers left the company in the months following the acquisition.[8]
In December 2003, Sun shut down the Cobalt product line.[2]
References
- ↑ 1.0 1.1 1.2 "Commerce One, Inc. 2000 Form 10-K Annual Report". U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1053355/000101287000001777/0001012870-00-001777.txt.
- ↑ 2.0 2.1 2.2 Vance, Ashlee (December 18, 2003). "Sun drives the final nail in Cobalt's coffin". The Register. https://www.theregister.co.uk/2003/12/18/sun_drives_the_final_nail/.
- ↑ "Company Overview of Cobalt Networks, Inc.". Bloomberg L.P.. https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=26637.
- ↑ "Cobalt IPO rockets". CNN. November 5, 1999. https://money.cnn.com/1999/11/05/news/cobalt/index.htm.
- ↑ "COBALT NETWORKS IS BUYING CHILISOFT FOR $70 MILLION". The New York Times. Dow Jones & Company. March 24, 2000. https://www.nytimes.com/2000/03/24/business/company-news-cobalt-networks-is-buying-chilisoft-for-70-million.html.
- ↑ Uimonen, Terho (March 23, 2000). "Cobalt to Acquire Chili Soft in $70M Deal". Computerworld. https://www.computerworld.com.au/article/93616/.
- ↑ FISHER, LAWRENCE M. (September 20, 2000). "Sun Microsystems to Acquire Cobalt for $2 Billion in Stock". The New York Times. https://www.nytimes.com/2000/09/20/business/technology-sun-microsystems-to-acquire-cobalt-for-2-billion-in-stock.html.
- ↑ Loney, Matt (January 5, 2004). "How to blow a billion--or two". ZDNet. https://www.zdnet.com/article/how-to-blow-a-billion-or-two-5000133508/.
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