Red Hat will be absorbed by IBM

Published on October 28, 2018

Red Hat will be absorbed by IBM

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    Fate so ordered that we are destined to witness another major takeover this year.

    Red Hat Software , an American company that produces solutions based on free Linux operating system and other software products and services based on open source, will lose its independence . Here, immediately after the scale, epic and significance of the transaction, a similar story from 2009 comes to mind as " Oracle swallowed the Sun. " That deal had very dismal effects . I wonder what this will turn out this time?
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    IBM has announced a Red Hat purchase agreement . From the press release, we can conclude that IBM acquired Red Hat as an open-source cloud solutions provider and includes it into its hybrid cloud division as an independent division. It will be the largest acquisition in the history of IBM, notes Reuters .

    According to the report, the parties reached a final agreement providing for the purchase by IBM of all Red Hat emitted shares at a price of $ 190 per unit, representing a total enterprise value of approximately $ 34 billion. At auction on FridayOn October 26, on the NYSE, the last Red Hat stock transaction was priced at $ 117, and the company's market capitalization was $ 20.53 billion. Thus, IBM acquires Red Hat at a price 60 percent higher than market valuation. For reference, IBM's capitalization currently stands at about $ 113.9 billion.


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    Chairman of the Board of Directors and President of IBM Corporation Ginny Rometti noted:
    The acquisition of Red Hat can change the rules of the game. It changes the whole situation on the cloud market.
    ...
    The deal will transform IBM into a global leader in hybrid cloud technologies compared to most competing companies that have to rent 80% of their computer capacity to reduce costs.

    Red Hat CEO Jim Whitehurst and other current company executives will remain in their posts.

    IBM promises to maintain an open Red Hat development model and will continue to support the community that has evolved around Red Hat products. Participation in various open source projects that involved Red Hat will continue.

    Together, IBM and Red Hat will continue to defend the interests of open source software , providing patent protection and the ability to use their patents in the FOSS environment , taking part in initiatives such as the GPL Cooperation Commitment , Invention Network and LOT Network .

    The deal between IBM and Red Hat is going to close completely in the second half of 2019.

    UPD A man appeared in the comments stating that he is an insider from Red Hat. And if you believe him, then everything is very sad.

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    How do you rate Red Hat takeover?

    • 34.8% extremely negative, the story of Sun Microsystems 244 is repeated
    • 26.5% are sad to read, but the history of many companies ends sooner or later 186
    • 24.8% neutral, every year someone buys someone 174
    • 3.8% restrained positively, because all dissenters will be able to resign and open their company 27
    • 9.8% optimistic, whatever is done is for the best, IBM and Red Hat symbiosis will be useful 69