Rocksolid Light

Welcome to novaBBS (click a section below)

mail  files  register  newsreader  groups  login

Message-ID:  

Any sufficiently advanced technology is indistinguishable from magic. -- Arthur C. Clarke


computers / rocksolid.shared.linux / IBM to acquire Red Hat

SubjectAuthor
o IBM to acquire Red HatAnonUser

1
IBM to acquire Red Hat

<1f633829b009269a6600f501c02aa7f3$1@rslight.novabbs.com>

 copy mid   Newsgroups: rocksolid.shared.linux
Path: rocksolid2!.POSTED.192.241.184.77!not-for-mail
From: AnonU...@rslight.i2p (AnonUser)
Newsgroups: rocksolid.shared.linux
Subject: IBM to acquire Red Hat
Date: Wed, 14 Nov 2018 02:15:43 -0000 (UTC)
Organization: Rocksolid Light
Message-ID: <1f633829b009269a6600f501c02aa7f3$1@rslight.novabbs.com>
Mime-Version: 1.0
Content-Type: text/plain; charset=utf-8; format=flowed
Content-Transfer-Encoding: 8bit
Injection-Date: Wed, 14 Nov 2018 02:15:43 -0000 (UTC)
Injection-Info: novabbs.com; posting-host="192.241.184.77";
logging-data="10966"; mail-complaints-to="usenet@novabbs.com"
 by: AnonUser - Wed, 14 Nov 2018 02:15 UTC

https://www.cnbc.com/2018/10/28/ibm-to-acquire-red-hat-in-deal-valued-at-34-billion.html

IBM to acquire Red Hat in deal valued at $34 billion

IBM announced plans to acquire Red Hat in a deal valued at about $34
billion.
Prior to the acquisition, Red Hat's market capitalization stood at
approximately $20.5 billion.
The acquisition is by far IBM's largest deal ever, and the third-biggest
in the history of U.S. tech.
Alex Sherman | Lora Kolodny
Published 2:16 PM ET Sun, 28 Oct 2018 Updated 7:29 AM ET Mon, 29 Oct 2018
CNBC.com
IBM-Red Hat deal is all about resetting the cloud lanscape, says IBM CEO
Rometty IBM-Red Hat deal is all about resetting the cloud landscape, says
IBM CEO Rometty
9:01 AM ET Mon, 29 Oct 2018 | 03:05
IBM is acquiring Red Hat, a major distributor of open-source software and
technology, in a deal valued around $34 billion, the companies announced
on Sunday.

According to a joint statement, IBM will pay cash to buy all shares in Red
Hat at $190 each. Shares in Red Hat closed at $116.68 on Friday before the
deal was announced.

The open source, enterprise software maker will become a unit of IBM's
Hybrid Cloud division, with Red Hat CEO Jim Whitehurst joining IBM's
senior management team and reporting to CEO Ginni Rometty.

Goldman Sachs, J.P. Morgan and Lazard advised IBM on the Red Hat deal.
Morgan Stanley and Guggenheim advised Red Hat.

The acquisition is by far IBM's largest deal ever, and the third-biggest
in the history of U.S. tech. Excluding the AOL-Time Warner merger, the
only larger deals were the $67 billion merger between Dell and EMC in 2016
and JDS Uniphase's $41 billion acquisition of optical-component supplier
SDL in 2000, just as the dot-com bubble was bursting.

Red Hat started 25 years ago as a distributor of a particular flavor of
Linux, an open-source operating system that is commonly used in server
computers that power company data centers. Today, Red Hat is known for
distributing and supporting Red Hat Enterprise Linux, as well as other
technologies commonly used in data centers. The company, which went public
at the peak of the dot-com boom in 1999, earned $259 million on revenue of
$2.92 billion in its last fiscal year, which ended Feb. 28. Its revenue
grew 21% between the 2017 and 2018 fiscal years.

Rometty told CNBC that the deal should not be interpreted as part of any
plan for her to transition out of her position as CEO at IBM.

"I'm still young and I'm not going anywhere," she told CNBC.

IBM will pause share repurchases in 2020 and 2021, but won't touch its
dividend. The pause is a cautionary measure as the company plans on
returning to its normal leverage ratio in about two years.

Open source has been the biggest theme in technology this year. Prior to
IBM's purchase of Red Hat, two of the biggest tech deals of the year were
Microsoft's $7.5 billion purchase of GitHub, a code-sharing service, and
Salesforce's $6.5 billion acquisition of MuleSoft, whose technology
stitches together disparate software applications, data and devices.
Earlier this month, big-data rivals Cloudera and Hortonworks agreed to
merge in a $5.2 billion deal.

Both Rometty and Whitehurst, in comments to CNBC, agreed that Microsoft's
purchase of GitHub was "irrelevant" to IBM and Red Hat's decision to enter
into a deal.

While Red Hat has talked for years about potentially selling itself to
other companies, including Google, never has anything gotten nearly as
serious as the negotiations with IBM, according to people familiar with
the matter.

"We were not looking to do something," Whitehurst told CNBC.

IBM reported lighter-than-expected revenue in its most recent earnings
update, and its revenues shrank from the previous year after three
quarters of growth. Prior to that brief growth period, the company's
revenues had been slowly declining for about five years.

The company has been working to catch up to Amazon and Microsoft in the
cloud infrastructure business.

Cloud is one of IBM's four key strategic imperatives, or growth drivers --
the others are social, mobile and analytics -- and in the quarter, IBM
announced cloud deals with Economical Insurance, ExxonMobil and Novis.

IBM and Red Hat said the deal would enable businesses to do even more work
in the cloud, keeping their apps and data portable and secure, no matter
which cloud or hybrid technologies they adopt.
--
Posted on Rocksolid Light.

1
server_pubkey.txt

rocksolid light 0.9.7
clearnet tor