Photo: Tech Crunch
What You Need To Know
This week IBM announced that they bought Red Hat for $34 Billion. IBM spent $190 a share, which technically was overpaying, as at close on Friday, Red Hat was worth $117 a share - however; Red Hat did not necessarily want to be sold. IBM had to overpay to acquire what they wanted.
IBM has always been a server based business, and right now, they are focusing new energy on cloud; so, in essence, this was a smart move for the company as a whole, based on the direction they are headed.
According to Tech Crunch, “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, in a statement. “IBM will become the world’s number-one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.”
What Do You Think?
Do you feel overpaying for the acquisition was smart? Is your company currently utilizing cloud? Sound off, below.
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Until next time, Techies!