Red Hat will be absorbed by IBM

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Fate so decreed that we are destined to witness another major merger 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 deal, a similar story from 2009 comes to mind as " Oracle swallowed the Sun. " That deal had very dismal effects . I wonder what will turn out this time?

hdfan2 : Tale of Little Red Riding Hood in a new way.

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 in its hybrid cloud division as an independent division. It will be the largest acquisition in the history of IBM, notes Reuters .
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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 the NYSE auction on Friday , October 26, the last deal with Red Hat shares was $ 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 at the moment is about 113.9 billion dollars.


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Ginny Rometti, Chairman of the Board of Directors and President of IBM, said:

The acquisition of Red Hat can change the rules of the game. It changes the whole situation on the cloud market.
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The deal will transform IBM into a global leader in hybrid cloud computing, compared with 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 be fully closed in the second half of 2019.

UPD A man appeared in the comments claiming to be a Red Hat insider. And if you believe him, then everything is very sad.