IBM buys Red Hat for $34 billion
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lucidus
Damn ... didn't realize RH was worth so much.
reix2x
well this will teach us that working with linux can also make you rich 😀
cryohellinc
Wow, the figures... 😱
Neo Cyrus
...... I didn't even know Red Hate still existed.
Glidefan
Moderator
Red Hat is premium stuff on the servers business.
Loobyluggs
I think they underpaid. The tech is worth more over time.
Noisiv
IBM paid $190 a share in cash.
Which represents a 63% premium over Red Hat’s closing price of $116.68 per share on Friday.
PS
Glad it's IBM and not Amazon.
Loobyluggs
True on all counts, but: over time that will seem like pocket change for what the tech can do, not to mention the patents and owning those will allow for transference of revenue into OPEX costs, saving tax receipts in the billions.
Think about Star Wars purchase, Disney made that money back very quickly (I think the figure is already $6 thousand million over the $4 thousand million) and they then did the IP/Patent tax trick to lower tax payments, boosting net profits.
What surprises me is IBM didn't do it sooner. Dell are really leading the cloud for enterprise level right now. They are walking through a crowd-less park and enjoying the sunshine and butterflies. IBM have to catch up to them. This is just my opinion, of course, but Dell are number one for cloud.
But, no more...Dell should be terrified of this news.
Noisiv
@Loobyluggs
When you say Dell, you are talking about cloud infrastructure.
This strengthens IBM in cloud software. Where Amazon is #1, MSFT 2nd, Google 3rd, > everyone else
Loobyluggs
https://www.idc.com/getdoc.jsp?containerId=prUS44025018
Yes, it does strengthen IBM for software considerably - yet Dell lead overall. You must understand that IBM is a hardware company first and foremost.
rl66
There is more Linux machine than Windows (and of course Apple) one around the world, and it's crowing each day...
And so it can be profitable, and at least have an elevated cost.
It's a major actor in nearly everything... So yes it is alive.
not only, you have red hat in distro, in some phone, in car etc etc
Embra
Not so surprising. They have had a partnership from the beginning.
reix2x
jeje i know pal, in the university days we joke a lot about it, if you work on open source you will never be rich, but in the reality we all know it was a good way to follow for many reasons ("Learn the work not the tool")
schmidtbag
Catering to their name since the 1910s... making business machines. They may have lost the interest of console makers and PCs but they still have plenty of other markets to tap into.
JJayzX
IBM is also one of, if not a leader in quantum computing.
schmidtbag
I may be mistaken, but I think D-Wave is the current leader. IBM is definitely way up there, though.
Embra
It really started back when they sold off there PC division. IBM is still very relevant in so may different ways.
southamptonfc
IBM and Redhat both have a long history in open source. This must be good for for us long term.
Also as said, this really brings IBM's cloud offering into the game. I much prefer their world-view over Amazon and Google who seem to have forgotten their 'don't be evil' motto in recent times..
RealNC
Hm. It turns out that 34 billion makes this the largest software acquisition in history. Way bigger than I thought.
