News

IBM Acquires Red Hat for $34 Billion (£27B)

Largest Acquisition Yet by IBM

It is now official. Open source specialists Red Hat is now part of IBM. This is IBM’s largest ever acquisition worth $34 billion USD (£27B). IBM offered $190 per issued and outstanding share, which is a 62% premium over Friday’s closing share price.

Red hat of course, produces and supports, enterprise flavors of the open-source Linux operating system. IBM, being a long-time supporter of open-source, seems like a good fit to acquire the company. Although Big Blue has grander plans in mind.

Why Did IBM Acquire Red Hat?

“The acquisition of Red Hat is a game-changer,” said IBM’s Ginni Rometty. “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.”

This will also give IBM a competitive edge in the enterprise cloud computing market. This market of course, currently has Amazon, Google and Microsoft at the top. Although the acquisition according to ZDNet, gives IBM “software heft and an OpenStack playbook that can rival VMware.”

Meanwhile, according to Red Hat CEO Jim Whitehurst, joining forces  with IBM will provide them “with a greater level of scale, resources and capabilities to accelerate the impact of open source.” Adding that it will bring their product to an even wider audience. All while preserving their  “unique culture and unwavering commitment to open source innovation.”

Ron Perillo

Disqus Comments Loading...

Recent Posts

Trust Gaming GXT 609 Zoxa 2.0 PC Speakers

SOUNDS GREAT – Full stereo sound (12W peak power) gives your setup a booming audio…

4 hours ago

PowerA Wired Controller for Nintendo Switch

Special Edition Yoshi design Ergonomic controller shape with Nintendo Switch button layout Detachable 10ft (3m)…

4 hours ago

Logitech G Saitek PRO Flight Rudder Pedals

Fluid Motion: These flight rudder pedals are smooth and accurate that enable precise control over…

4 hours ago

Logitech G Saitek Farm Sim Controller

Heavy Equipment Bundle: Includes a steering wheel for heavy machinery, gas and brake pedals, and…

4 hours ago

Razer Ornata V3 X – Low Profile Gaming Keyboard

Low-profile Keys for an ergonomic gaming experience. With slimmer keycaps and shorter switches, enjoy natural…

4 hours ago

Glorious Gaming Model O Wired Gaming Mouse

Size & style: Ambidextrous lightweight mouse for gaming. Built for speed, control and comfort, with…

4 hours ago