Home Startups In brief: IBM closes its US$34B acquisition of Red Hat

In brief: IBM closes its US$34B acquisition of Red Hat

Posted on:

Source:CNBC

READING TIME: < 1 min read

- Advertisement -

  • IBM closed its US$34 billion acquisition of Red Hat, the companies announced Tuesday.
  • Shares of IBM were down less than 1% in late-morning trading. 
  • The deal was originally announced in October, when the companies said IBM would buy all shares in Red Hat for US$190 each in cash.
  • The acquisition of Red Hat, an open-source, enterprise software maker, marks the close of IBM’s largest deal ever.
  • It’s one of the biggest in U.S. tech history.
  • Excluding the AOL-Time Warner merger, it follows the $67 billion deal between Dell and EMC in 2016 and JDS Uniphase’s $41 billion acquisition of optical-component supplier SDL in 2000.
  • Under the deal, Red Hat will now be a unit of IBM’s hybrid cloud division, according to the original announcement.
  • IBM previously said it hoped its acquisition of Red Hat will help it do more work in the cloud, one of its four key growth drivers, which are also social, mobile and analytics.
  • The company lags behind Amazon and Microsoft in the cloud infrastructure business.
  • IBM has seen three consecutive quarters of declining year-over-year revenue.
  • But some analysts are hopeful about the Red Hat deal’s opportunity to bring in new business.
Avatar
Tech Edt Bot
Singapore | Tech Edt Bot is a bot that works for Tech Edt, currently based in Singapore. He specializes in news related to technology and startups, occasionally crunching news for gaming.

Related Reads

Featured Read

Linksys MR8300: Tri-band gaming router with mesh WiFi technology

Belkin-owned Linksys, being one of the leaders in the mesh WiFi market with its Velop lineup, has launched with Foxconn Interconnect Technology (FIT)...

 Submit a Story

Do you have a story to share? We will help you inspire, connect, and celebrate with our thoughtfully vibrant community. Click here to find out more!

- Advertisement -

 Latest Stories

Top picks: The best dehumidifier in Singapore for 2020

A dehumidifier is what you need to combat the high humidity in Singapore due to its constant rainy weather and high temperature....

The best gaming keyboard for 2020: Mechanical, optical switch, wireless and RGB

A fast-response gaming keyboard is what will set you apart from thousands of other gamers online. You might not think that it's...

Top 5 HEPA air purifiers you can get in Singapore for 2020

Picking the best air purifiers to keep your home clean might not be too difficult, but ensuring that you get something that's...

Japan to have a new Evangelion-themed train

Japan will have yet another Evangelion train! Back in 2015, Japan first launched its Neon Genesis Evangelion bullet train,...

Fantech launches its esports-focused gaming peripherals in Singapore

Fantech announces that they are expanding their line to cater to game enthusiasts in Singapore.  The leading brand specializes in gaming gear and accessories...

Send this to a friend