Cobalt Networks
{{Short description|Computer appliance company (1996–2000)}}
{{Infobox company
| name = Cobalt Networks, Inc.
| logo = Cobalt Networks logo.svg
| fate = Acquired by Sun Microsystems
| foundation = {{start date and age|1996}}
| founder = Vivek Mehra
| defunct = {{end date and age|2000|12|07}}
| location = Mountain View, California
| revenue = {{increase}} $22 million (1999)
| net_income = {{decrease}} -$23 million (1999)
| assets = {{increase}} $151 million (1999)
| equity = {{increase}} $130 million (1999)
| num_employees = 140 (1999)
| footnotes = {{cite web | url=https://www.sec.gov/Archives/edgar/data/1053355/000101287000001777/0001012870-00-001777.txt | title=Commerce One, Inc. 2000 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission}}
}}
File:Cobalt Qube 3 Front.jpg - a computer server appliance]]
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.
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.
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.
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.{{cite web | url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=26637 | title=Company Overview of Cobalt Networks, Inc. | work=Bloomberg L.P.}}
The company introduced products as follows:
| class="wikitable sortable" |
| scope="col" | Product
! scope="col" | 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.{{cite news | url=https://money.cnn.com/1999/11/05/news/cobalt/index.htm | title=Cobalt IPO rockets | work=CNN | date=November 5, 1999}}
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.{{cite news | url=https://www.nytimes.com/2000/03/24/business/company-news-cobalt-networks-is-buying-chilisoft-for-70-million.html | title=COBALT NETWORKS IS BUYING CHILISOFT FOR $70 MILLION | agency=Dow Jones & Company | work=The New York Times | date=March 24, 2000 | url-access=subscription}}{{cite news | url=https://www.computerworld.com.au/article/93616/ | archive-url=https://web.archive.org/web/20180506104230/https://www.computerworld.com.au/article/93616/ | url-status=dead | archive-date=2018-05-06 | title=Cobalt to Acquire Chili Soft in $70M Deal | first=Terho | last=Uimonen | work=Computerworld | date=March 23, 2000}}
In September 2000, Sun Microsystems announced the acquisition of the company for $2 billion in stock.{{cite news | url=https://www.nytimes.com/2000/09/20/business/technology-sun-microsystems-to-acquire-cobalt-for-2-billion-in-stock.html | title=Sun Microsystems to Acquire Cobalt for $2 Billion in Stock | first=LAWRENCE M. | last=FISHER | work=The New York Times | date=September 20, 2000}} The acquisition was completed on December 7, 2000.
Many disgruntled engineers left the company in the months following the acquisition.{{cite news | url=https://www.zdnet.com/article/how-to-blow-a-billion-or-two-5000133508/ | title=How to blow a billion--or two | first=Matt | last=Loney | work=ZDNet | date=January 5, 2004}}
In December 2003, Sun shut down the Cobalt product line.{{cite news | url=https://www.theregister.co.uk/2003/12/18/sun_drives_the_final_nail/ | title=Sun drives the final nail in Cobalt's coffin | first=Ashlee | last=Vance |author-link=Ashlee Vance | work=The Register | date=December 18, 2003}}
References
{{Reflist|1}}
{{Sun Microsystems}}
{{Dot-com Bubble}}
Category:1996 establishments in California
Category:1999 initial public offerings
Category:2000 disestablishments in California
Category:2000 mergers and acquisitions
Category:American companies established in 1996
Category:American companies disestablished in 2000
Category:Computer companies established in 1996
Category:Computer companies disestablished in 2000
Category:Defunct computer companies based in California
Category:Defunct computer companies of the United States
Category:Defunct computer hardware companies
Category:Defunct computer systems companies