IBM Acquires Red Hat for $34 Billion USD: Linux, Hybrid Cloud, OpenStack, & Kubernetes Solutions

IBM Acquires Red Hat for $34 Billion USD: Linux, Hybrid Cloud, OpenStack, & Kubernetes Solutions

"Game Changing" Move by IBM the Largest Software Company Acquisition in Corporate History

IBM announced this weekend that it will acquire the shares of Red Hat (NASDAQ: RHT) at a $190, a 62.8% premium to their closing price of $116.68 in a $34 billion USD deal still subject to approval by regulators & stockholders. If closed successfully, the deal will represent the largest purchase price paid for a software company in history, topping the 2016 acquisition of LinkedIn by Microsoft for $26 billion USD. In initial comments on the merger, IBM CEO Ginni Rometty stated: “The acquisition of Red Hat is a game-changer. It changes everything about the cloud market. 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.” Founded in 1994, Red Hat is one of the oldest and most widely used Linux distributions available for data centers today. Red Hat was the first open source software company to $500 million USD in annual revenue and is expected to surpass $3 billion in revenue in 2018. IBM gains the Red Hat Enterprise Linux codebase, programming talent, patents/IP, & goodwill, as well as the OpenShift, Kubernetes, OpenStack, JBoss, CoreOS, & Ansible resources. Red Hat has over 12,600 employees with corporate headquarters in Raleigh, North Carolina. As IBM is projecting cloud scale-out at the global level as a $1 trillion USD annual market, Red Hat's programming & engineering talent is already innovating at the highest levels of implementation for Fortune 500 corporations and provides an industry leading Linux product suite for data center management. This merger could have a major impact on the future of CentOS.

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Red Hat Acquires CoreOS to Expand New Kubernetes & Linux Container Solutions

Red Hat Acquires CoreOS to Expand New Kubernetes & Linux Container Solutions

Container Linux, Tectonic, etcd, rkt, & Flannel to be integrated into OpenShift & Atomic Host

A seismic shift in the competitive Linux container and Kubernetes orchestration solutions landscape occurred on January 30th, 2018 with the announcement from Red Hat, Inc. that the company had finalized a deal to acquire CoreOS, along with their complete software portfolio & staff of 130 programming experts, for a price of $250 million USD. CoreOS has been a leading innovator in the open source community for data center management tools with the production of Container Linux, rkt, etcd, Flannel, & the Tectonic platform for Kubernetes cluster servers. Along with these resources, Red Hat also purchased the Quay.io private Docker registry service which CoreOS acquired in 2014 and used to start their NYC office. CoreOS was founded in 2013 in Palo Alto by Alex Polvi (CEO), Brandon Philips (CTO), and Michael Marineau. CoreOS had previously raised a total of $48 million USD from Google Ventures, Intel Capital, Sequoia Capital, Y Combinator, Accel Partners, Kleiner Perkins Caufield & Byers, and others to fund their start-up operations. Joe Fernandes, senior director of OpenShift Product Management at Red Hat summed up the rationale behind the acquisition by stating, "We see tremendous synergy both in our open source cultures and across our respective product portfolios." CoreOS's leading enterprise customers such as Verizon, eBay, Salesforce, Veritas, & Ticketmaster will also be migrated gradually to integrated Kubernetes and Linux container services managed by Red Hat.

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