Cobalt_Networks

Cobalt Networks

Cobalt Networks

Computer appliance company (1996–2000)

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]

Quick Facts Founded, Founder ...
Cobalt RaQ 2
Cobalt Qube - a computer server appliance

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]

More information Product, Launch date ...

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. [1]
    "Commerce One, Inc. 2000 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. [2]
    Vance, Ashlee (December 18, 2003). "Sun drives the final nail in Cobalt's coffin". The Register.
  3. [3]
    "Company Overview of Cobalt Networks, Inc". Bloomberg L.P.
  4. [4]
    "Cobalt IPO rockets". CNN. November 5, 1999.
  5. [5]
    "COBALT NETWORKS IS BUYING CHILISOFT FOR $70 MILLION". The New York Times. Dow Jones & Company. March 24, 2000.
  6. [6]
    Uimonen, Terho (March 23, 2000). "Cobalt to Acquire Chili Soft in $70M Deal". Computerworld.
  7. [7]
    FISHER, LAWRENCE M. (September 20, 2000). "Sun Microsystems to Acquire Cobalt for $2 Billion in Stock". The New York Times.
  8. [8]
    Loney, Matt (January 5, 2004). "How to blow a billion--or two". ZDNet.
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