IBM has decided to take the software company Red Hat under its wing. They will pay an incredible 34 billion dollars for this, i.e. more than three quarters of a trillion crowns. This makes this purchase by far IBM's largest acquisition.
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IBM is excited about the acquisition, as it sees huge potential and believes it will help it gain traction in many more positions. “The acquisition of Red Hat is a game changer. IBM will become the world leader in providing hybrid cloudu, will offer companies a single open solution cloudu, which opens the full value cloudfor their business,” said IBM CEO Ginny Rometty, who, according to available information, would like to expand the offer of subscription-based software. IBM is now facing deteriorating software sales, which go hand in hand with weakening demand for server computers. However, the purchase of Red Hat should at least partially alleviate this problem and help IBM in cloudin this fight with Amazonum Microsoftem or Alphabet.
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The purchase of Red Hat by IBM also made its shareholders very happy. Their shares jumped by 62% and are now valued at $190 a piece, despite the fact that the closing of this giant deal will take place in the second half of next year.
Red Hat is a company focused on the Linux operating system, which it modifies in various ways for companies' orders. They subsequently pay them for their services, whether it is the work itself or "mere" maintenance and technical support, which makes this IBM purchase a very interesting building block for the development of subscriptions. But what IBM can do with Red Hat is still in the stars.
Ginny Rometty is a woman, not a man ;)