Red Hat Is Acquired by IBM
By MYBRANDBOOK
Tech giant IBM could see the future to be the cloud based model and services, to enhance it’s solution portfolio, IBM announced in the mid night, it will acquire enterprise Linux vendor Red Hat, in a US$34 billion cash deal. IBM offers $190 a share when Red Hat closed at $116.68 Friday. It is the world’s biggest acquisition of open-source business.
With the market capitalization of $20.5 billion, another 176 million shares of Red Hat outstanding and the subscription revenue is $ 722 million . Both Red Hat and IBM have worked together for the past two decades, and intend to focus on the hybrid multi-cloud market after joining forces. IBM acquired Red Hat for 63% above Friday’s closing price.
The acquisition of Red Hat is a game-changer. It changes everything about the cloud market. IBM will become the world's number one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses. Expert says, with this acquisition IBM has saved the organisation to grow further. We have to wait and watch what will be the strategy of IBM to save UNIX.
"Today’s announcement is the evolution of our long-standing partnership,” said IBM chief executive Ginni Rometty in a statement. “This includes our joint Hybrid Cloud collaboration announcement in May, a key precursor in our journey to this day,” Rometty said.
Open source is the default choice for modern IT solutions, and I'm incredibly proud of the role Red Hat has played in making that a reality in the enterprise," said Jim Whitehurst, Red Hat's CEO. "Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience--all while preserving our unique culture and unwavering commitment to open source innovation."
Red Hat is an open source software company that gives away the source code for its core products. That means anyone can download them for free. And many do. Oracle even uses Red Hat’s source code for its own Oracle Linux product. The industry was guessing on Microsoft to buy Redhat, but Microsoft acquired GitHub for $7.5 billion. with this Now with this buyout by IBM, “It changes everything about the cloud market.”
Red Hat will join IBM's Hybrid Cloud team as a separate unit, continuing to be led by the current management team. On its part, IBM said it is committed to Red Hat's role as an open source contributor and ut’ll continue participation in the open source community and development model, and fostering its widespread developer ecosystem.
IBM said Red Hat will continue to “build and enhance” Red Hat partnerships with AWS, Azure, GCP and Alibaba.
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