Insight: RedHat Sold To IBM For $34 Billion Dollar
Probably, One of the most shocking news for open source community as RedHat has been sold to IBM for $34 billion dollar. This deal is going to be the third-biggest in the history of U.S. tech.
It has been reported that IBM is going to pay cash to buy all the shares in Red Hat at $190 each. Red Hat is the world’s leading provider of enterprise open source software solutions.
After this deal, Red Hat will operate as a distinct unit within IBM’s Hybrid Cloud team.
“The acquisition of Red Hat is a game-changer,” said Ginni Rometty, IBM’s chairman, president and chief executive, in a statement Sunday.
“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer. “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.
“Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs,” she said. “The next 80 percent is about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales.”
“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, President and CEO, Red Hat. “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.”