The fallout of the acquisition talks between Sun Microsystems and IBM seem to be becoming more complex to handle for Sun Microsystems. The board of Sun Microsystems is reportedly divided over the way the talks were negotiated and with the final outcome of the deal.

The board is divided into two camps, one lead by Scott McNealy and the other by CEO Jonathan Schwartz. While one camp wanted the deal to happen the other camp opposed it mainly due to the lowering down of the bid amount by IBM. The board was however unanimous in formally rejecting IBM’s offer.

Additionally there appears to be lack of clarity over Sun’s way ahead. CEO, Schwartz tried to convince employees about the company’s focus and desire to continue to stay afloat. In a video communication sent to the employees, the CEO said that the company remains focused in promoting its technology and solutions.

Sun Microsystems also saw its CTO for microelectronics business division, Marc Tremblay leaving the organization. He will be replaced by co-CTO, Rick Hetherington.

The proposed merged with IBM always mattered more to Sun than to IBM. For IBM the deal was an easy means to gain more market share. But for Sun it meant more than that since the company has been facing some tough time on the financial aspects. It is believed that Sun has not been able to identify any potential suitor apart from IBM and this fact also lead to IBM toughening its stand on the deal.

The company’s stock price has also rapidly eroded by 26 % since the  emergence of fallout of talks.