IBM acquires Red Hat for $34 billion

IBM just announced a blockbuster deal where it will acquire Red Hat for $34 billion. They essentially bought IBM at a $13.5 billion premium. If you’ve been paying attention to what happens when companies are bought at a premium, you could probably predict Red Hat’s stock price exploding.

For those who have been in the dark for the past two centuries, Red Hat has grown from a company that brought user-friendly Linux into mainstream company to a company that specializes in open source, enterprise-friendly software. IBM hopes that absorbing Red Hat will help bolster its Hybrid Cloud division.

For all of its security and privacy risks, it looks like all the big computers are really pushing for cloud computing to be the future in technology.


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