IBM Acquires Red Hat for $34 Billion


The IT giant IBM has announced today that it has acquired the small but emerging Red Hat Inc, which is responsible for the worldwide distribution of Red Hat Linux, which has grown exponentially in recent times.

The reason for the giant house software pushing this giant $190 per share bid was to deter other companies from entering the race for the acquisition of this company, not only this but IBM and Red Hat also agreed in a breach contract fee of a very high value, and can be a historical value for this type of business.

While the deal could be quite promising, and is clearly highly beneficial to Red Hat and its investors, IBM shareholders already saw the venture as risky, with the giant’s stock down by about 2 percent, but IBM’s CEO Ginni Rometty, believes that this will be a great deal, and that they have just offered the fair value.

The reason for the acquisition, has to do with the company’s defined growth strategy, which goes through bets on a hybrid cloud network, thereby intending to offer IBM as the best of many worlds, with its software, its facilities and its hardware. In addition, this acquisition also allows the company to provide proprietary software to private datacenters, entering the race against other giants, such as Microsoft.

Either way, IBM is not new to the market, and with years of experience, it comes from heavily weighted decisions, such as this acquisition, which is certainly the result of several hours of meetings and strategic decisions, and once that the future, as proven, is in the cloud, this bet could not be more accurate, and since it works both in its proprietary clouds, as in private and autonomous clouds, IBM will enjoy the fruits of these two monetary sources.