Episode 94

IBM Buys Red Hat


October 30th, 2018

59 mins 56 secs

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About this Episode

In the largest software company acquisition in history, tech giant IBM has purchased Red Hat for 34 billion dollars. The open source community was shocked and devastated at first but is it too soon to judge? What has IBM really purchased a product or a culture? We explain why this could be the best thing ever to happen to Linux and FOSS!

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Episode Links

  • IBM is coming for Red Hat developers...sometime in 2019 • DEVCLASS — But, “Number one is the people of Red Hat…we’ve got to preserve absolutely this Switzerland [status].” By coincidence, the population of Switzerland is slightly North of 8 million, roughly the same as Red Hat’s worldwide developer community. Rometty also said “We now have access to the world’s largest developer community.”
  • IBM strikes deal to buy Red Hat for $34 billion - Business Insider — IBM will pay $190 a share for the software company, which it described as the world's leading provider of open-source cloud software, a premium of more than 60% from Red Hat's closing stock price of $116.68 on Friday. Shares traded upward of $175 in June, but disappointing earnings combined with a volatile market to see the price drop sharply.
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