IBM acquires Red Hat - This deal is the biggest Linux and open-source acquisition ever
In an unexpected report, Bloomberg stated IBM is close to announcing that it will be acquiring Red Hat. The news has been confirmed. IBM is acquiring Red Hat for $190.00 per share in cash. This a total enterprise value of approximately $34 billion.
Red Hat is the leading corporate Linux company. Prior to this deal. Red Hat had a market capitalization of about $20.5 billion. This is the biggest Linux or open-source business deal ever.
IBM CEO Ginni Rometty focused on the cloud benefits of IBM acquiring Red Hat rather than Linux. "The acquisition of Red Hat is a game-changer. It changes everything about the cloud market. IBM will become the world's #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses."
So let's just hope this won't be like Oracle's disastrous buy out of Sun. IBM has at least been long in the open source game themselves.
|IBM acquires Red Hat | ZDNet
This deal is the biggest Linux and open-source acquisition ever.