Skip to main content

IBM Buys `Red Hat` Open-Source Software Company for $34 Billion.

Automated Publishing Via Osuta Yusuf Robot Trigger.


It's been quite a year for the open source platforms.


Earlier this year, Microsoft acquired popular code repository hosting service GitHub for $7.5 billion, and now IBM has just announced the biggest open-source business deal ever.


IBM today confirmed that it would be acquiring open source Linux firm Red Hat for $190 per share in cash, working out to a total value of approximately $34 billion.


Red Hat, known for its Red Hat Enterprise Linux (RHEL) operating system, is a leading software company that offers open-source software products to the enterprise community. Even Oracle uses Red Hat’s source code for its Oracle Linux product.


Red Hat's last year revenue was $2.4 billion, and this year the company has earned $2.9 billion. But if Red Hat products are open source and updates are free, you might be wondering how does the company earn.


Red Hat was one of the first companies who found a successful way to make money from free open-source software. It offers consulting services—including assessments, implementations, platform migrations, solution integration, and application development.


IBM Acquires Red Hat to Target Cloud Computing Giants


Like other big tech companies, IBM has also been a major supporter of Linux and contributor to the kernel and other open source projects, but the company has been left behind Amazon, Alphabet (Google) and Microsoft when it comes to cloud computing.


The acquisition deal will help IBM expand its reach as an enterprise cloud computing provider.


"The acquisition of Red Hat is a game-changer. It changes everything about the cloud market," Ginni Rometty, IBM Chairman, President, and Chief Executive Officer said in a statement.


"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."




IBM: Red Hat Will Remain Independent Unit


It is important to be noted that Red Hat will continue to be led by Red Hat CEO Jim Whitehurst and Red Hat’s current management team, as before. IBM intends to maintain Red Hat’s headquarters, facilities, brands, and practices.


"Importantly, Red Hat is still Red Hat. When the transaction closes, as I noted above, we will be a distinct unit within IBM, and I will report directly to IBM CEO Ginni Rometty. Our unwavering commitment to open source innovation remains unchanged," said James M. Whitehurst, CEO at Red Hat.


"The independence IBM has committed to will allow Red Hat to continue building the broad ecosystem that enables customer choice and has been integral to open source’s success in the enterprise."




According to IBM, the deal between IBM and Red Hat has already been approved by both of the companies' boards of directors, but it is still subject to Red Hat shareholder and regulatory approvals.


If all goes as planned, the acquisition deal is expected to close in the second half of 2019.


Comments

Post a Comment

Popular posts from this blog

Lab Student Drowned, Body Missing in Rokoze Lake in Nyadri Sub-county, Maracha District.

Maracha District.  5-December-2025. 📸: Residents gathered around the lake as they searched the missing body of the student. Photo by #Information_is_Power's news reporter.  This afternoon Friday 5-December-2025, a student from St Joseph Laboratory Training School in Maracha hospital, a one  Araku Denis drowned in Rokoze water body in Nyadri Sub-county and the  body has not been retrieved upto this night as the police and residents searched for it and in vain but they are expected to resume retrieving it tomorrow Saturday 6-December-2025. 📸: Photo of the deceased which we captured on his phone screen this night. Araku and his fellow students had  reportedly gone to pass time at water point after completing exams papers of today. Him and callagues got attracted to swimming at water body where he perished.  By press time, efforts to retrieve his body proved futile as the body remains invisible on water surface.  Rokoze water body...
Post a Comment
Read more

Hon Oguzu Lee Denis Drags to Court, Maracha Constituency MP-Elect Uhuru Nelson and Electoral Commission.

Story by Osuta Yusuf.  Maracha District 6-April-2026. Following the 15-1-2026 general election, the two term MP for Maracha Constituency, Hon Oguzu Lee Denis has dragged to court the Winner for Maracha Constituency MP election, Uhuru Nelson as the first respondent and Election Commission as the second respondent.  📸: Copy of the court document shared in NEWS PLATFORM, one of the WhatsApp groups in WestNile region. In a document dated 1-April-2026 filed at Arua High Court, it's not yet clear which grounds the petitioner, Hon Oguzu Lee Denis has used to challenge the victory of the NRM Party candidate Uhuru Nelson.  It should be noted that, the NRM Party candidate Uhuru Nelson was declared the winner of the 15-1-2026 general election after he garnered 13,696 votes, followed by Independent candidate Obeta Moses Drakua who garnered 9,247 votes, the incumbent MP Hon Oguzu Lee Denis (FDC) fell in the third position after he got 3,290 votes, Eng. Aguta Sam (Independent) got 686...
Post a Comment
Read more

Famous Arua City TikToker Arrested on Allegations of Lesbianism Act.

Arua City. 20-2-2026. A famous TikToker from Arua City, WestNile region, in the names of Torrero Bae was arrested on Wednesday 18-2-2026 and taken to Onduparaka Police Station on Allegations of engaging in Lesbianism acts with another girl. Story excerpts from the Facebook account of Kawawa Michael.  📸: Part of the screenshot  📸: Screenshot from Facebook.  I have spoken to a reliable source from Onduparaka Div police HQS  As concerns the case of these girls  It's true they have confessed to being lesbians and the whole of their dancing group is involved  She comes from a good family and the mother is a teacher by profession I will hide her names  It's alleged that she started her lesbiansim from school that is why she ran away from the mother that is according to her mother who was present at Onduparaka today  Police is trying to apprehend the whole group then make a decision on the file at the moment other...
Post a Comment
Read more