IBM Closes Landmark Acquisition of Red Hat for $34 Billion; Defines Open, Hybrid Cloud Future
09/07/2019
ARMONK, N.Y. and RALEIGH, N.C., July 9, 2019 /PRNewswire/ -- IBM (NYSE: IBM) and Red Hat announced today that they have closed the transaction under which IBM acquired all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total equity value of approximately $34 billion.
The acquisition redefines the cloud market for business. Red Hat s open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM s innovation and industry expertise, and sales leadership in more than 175 countries. Together, IBM and Red Hat will accelerate innovation by offering a next-generation hybrid multicloud platform. Based on open source technologies, such as Linux and Kubernetes, the platform will allow businesses to securely deploy, run and manage data and applications on-premises and on private and multiple public clouds.
"Businesses are starting the next chapter of their digital reinventions, modernizing infrastructure and moving mission-critical workloads across private clouds and multiple clouds from multiple vendors," said Ginni Rometty, IBM chairman, president and CEO. "They need open, flexible technology to manage these hybrid multicloud environments. And they need partners they can trust to manage and secure these systems. IBM and Red Hat are uniquely suited to meet these needs. As the leading hybrid cloud provider, we will help clients forge the technology foundations of their business for decades to come."
"When we talk to customers, their challenges are clear: They need to move faster and differentiate through technology. They want to build more collaborative cultures, and they need solutions that give them the flexibility to build and deploy any app or workload, anywhere," said Jim Whitehurst, president and CEO, Red Hat. "We think open source has become the de facto standard in technology because it enables these solutions. Joining forces with IBM gives Red Hat the opportunity to bring more open source innovation to an even broader range of organizations and will enable us to scale to meet the need for hybrid cloud solutions that deliver true choice and agility."
Red Hat will continue to be led by Jim Whitehurst and its current management team. Whitehurst is joining IBM s senior management team, reporting to Ginni Rometty. IBM will maintain Red Hat s headquarters in Raleigh, North Carolina, its facilities, brands and practices. Red Hat will operate as a distinct unit within IBM and will be reported as part of IBM s Cloud and Cognitive Software segment.
Both companies have already built leading enterprise cloud businesses with consistent strong revenue growth by helping customers transition their business models to the cloud.
IBM s cloud revenue has grown from 4 percent of total revenue in 2013 to 25 percent today. This growth comes through a comprehensive range of as-a-service offerings and software, services and hardware that enable IBM to advise, build, move and manage cloud solutions across public, private and on-premises environments for customers. IBM cloud revenue for the 12-month period through the first quarter of this year grew to over $19 billion. The Red Hat acquisition is expected to contribute approximately two points of compound annual revenue growth to IBM over a five-year period.
Red Hat s fiscal year 2019 revenue was $3.4 billion, up 15 percent year-over-year. Fiscal first quarter 2020 revenue, reported in June, was $934 million, up 15 percent year-over-year. In that quarter, subscription revenue was up 15 percent year-over-year, including revenue from application development-related and other emerging technology offerings up 24 percent year-over-year. Services revenue also grew 17 percent.
The Hybrid Cloud Opportunity
Digital reinvention is at an inflection point as businesses enter the next chapter of their cloud journey. Most enterprises today are approximately 20 percent into their transition to the cloud. In this first chapter of their cloud journey, businesses made great strides in reducing costs, boosting productivity and revitalizing their customer-facing innovation programs. Chapter two, however, is about shifting mission-critical workloads to the cloud and optimizing everything from supply chains to core banking systems.
To succeed in the next chapter of the cloud, businesses need to manage their entire IT infrastructure, on and off-premises and across different clouds private and public in a way that is simple, consistent and integrated. Businesses are seeking one common environment they can build once and deploy in any one of the appropriate footprints to be faster and more agile. IBM s offerings have evolved to reflect new customer needs and drive greater growth. The acquisition of Red Hat further strengthens IBM as the leader in hybrid cloud for the enterprise.
"As organizations seek to increase their pace of innovation to stay competitive, they are looking to open source and a distributed cloud environment to enable a new wave of digital innovation that wasn t possible before. Over the next five years, IDC expects enterprises to invest heavily in their journeys to the cloud, and innovation on it. A large and increasing portion of this investment will be on open hybrid and multicloud environments that enable them to move apps, data and workloads across different environments,"
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
29/04/2024
Screen Australia announces James J. Robinson's debut feature First Light
29 04 2024 - Media release Screen Australia announces James J. Robinson's debut feature First Light First Light Principal Photography is underway on Firs...
29/04/2024
Capitol Broadcasting Becomes First Company Inducted into NC Media and Journalism Hall of Fame
Capitol Broadcasting recently became the inaugural company honored with inductio...
28/04/2024
Mediahaus delivers the first SRT live-streaming sports production over 5G with URSA Broadcast G2
Mediahaus delivers the first SRT live-streaming sports production over 5G with U...
27/04/2024
L3Harris Chair and CEO Christopher E. Kubasik Discusses 1Q24 On CNBC's "Closing Bell: Overtime"
On April 26, L3Harris Chair and CEO Christopher E. Kubasik joined CNBC's Mor...
27/04/2024
Audinate Adds Major New Features to Dante Connect
PORTLAND, Oregon Audinate Group Limited, the developer of the Dante AV-over-IP solution, announced significant new additions to Dante Connect, its cloud-based D...
27/04/2024
Bell Media Launches New Portfolio of FAST Channels
TORONTO Bell Media has launched 10 English and French-language FAST channels featuring entertainment, factual, news, and sports programming. The new free stream...
27/04/2024
Study: Broadcast TV Evening News Avoids Serious Economic Issues
An extensive new analysis of the news segments in the broadcast evening news programs of ABC, CBS, NBC and PBS has found that broadcasters devoted most of their...
27/04/2024
Hughes Opens Manufacturing Facility and Private 5G Incubation Center in Maryland
GERMANTOWN, Md. EchoStar's Hughes Network Systems has opened a new manufacturing facility and private 5G incubation center in Germantown, Maryland....
27/04/2024
Broadcasting Legend Harry Pappas Dead At 78
Harry Pappas, one of three brothers who founded Pappas Telecasting Companies in 1971, died April 24. He was 78 years old....
27/04/2024
Televisa Selects Synamedia For Broadcast Distribution Overhaul
ATLANTA and LONDON Mexican telecommunications and broadcast company Televisa has selected Synamedia for an overhaul of its broadcast distribution....
27/04/2024
Participate in the Survey - The Impact of AI on Media and the Creative Industry
Participate in the Survey - The Impact of AI on Media and the Creative Industry Pascal Wagner April 26, 2024 0 Comments By participating in this surve...
27/04/2024
SDVI Rally Access Workstation Earns Two Top Awards at 2024 NAB Show
SDVI Rally Access Workstation Earns Two Top Awards at 2024 NAB Show Brie Clayton April 26, 2024 0 Comments SDVI, the leading platform provider for clo...
27/04/2024
Berklee's Music and Health Institute Launches Community Health Musician Certificate
Berklee's Music and Health Institute Launches Community Health Musician Cert...
27/04/2024
Charter Reports Higher Q1 Profits Despite Broadband, Video Losses
Charter Communications reported higher first-quarter profits despite continued cord-cutting and competition for broadband customers....
27/04/2024
Environmental Groups Aim To Make Unscripted TV More Sustainable
Two environmentally-focused groups are partnering to engage the unscripted TV world in finding better ways to address climate change. Reality of Change is an ec...
27/04/2024
Sarah Garcia Named Weekend Anchor at Telemundo 40 in Texas
Sarah Garcia has been promoted to weekend anchor at KTLM McAllen, Texas, known as Telemundo 40. Starting April 27, she will anchor Noticias Telemundo 40 weekend...
27/04/2024
CBS Sports Kicks Off FAST Channel for UEFA Champions League on Pluto TV
CBS Sports said it launched a new 24-hour free, ad supported streaming television (FAST) channel devoted to the UEFA Champions League....
27/04/2024
Brian Roberts's Pay Rose To $35 Million at Comcast
Comcast chairman and CEO Brian Roberts received $35.4 million in compensation in 2023, up 11% from the previous year, according to a proxy statement filed by th...
27/04/2024
John Lithgow Goes Back to School in Art Happens Here'
Art Happens Here With John Lithgow, which sees the actor study dance, ceramics, silk-screen printing and vocal jazz with students in Los Angeles, debuts on PBS ...
27/04/2024
FETV Wants Upfront Buyers Seeking Cable Viewers To Join Its Family
Remember Leave It to Beaver? Bewitched? Dragnet? When cable ratings were rising?...
27/04/2024
Catchy Comedy Features Gomer Pyle, USMC' Weekend Marathon
Next up for the weekend binge at Catchy Comedy is Gomer Pyle, U.S.M.C. Every weekend, Catchy Comedy features The Catchy Binge, a marathon of a classic sitcom....
26/04/2024
Sundance Film Festival CDMX 2024 kicks off today at Cinpolis
Sundance Film Festival CDMX 2024 kicks-off today with screenings in 5 theaters in Mexico City and the opening-night film, FRIDA, directed by Carla Guti rrez...
26/04/2024
Interview: Lourdes Portillo, Director of Las madres de la Plaza de Mayo, La Ofrenda
[Editor's Note: This interview is part of a larger feature about the women d...
26/04/2024
Career insights instead of everyday school life
Once again this year, SGL Carbon opened its doors to interested children and young people. On the occasion of the German Girls and Boys Day, which took place on...
26/04/2024
L3Harris Technologies Reports Strong First Quarter 2024 Results, Increases 2024 Profitability Guidance
Orders1 of $5.5 billion; book-to-bill of 1.06x Revenue of $5.2 billion, up 17%,...
26/04/2024
What Makes A Network Resilient?
Five Considerations For Communications Modernization In The 21st Century In the digital-enabled battlespace, the Joint Force needs to shoot, move and communica...
26/04/2024
CBS Sports Launches New Free Streaming Channel
CBS Sports has launched Champions League as a new, 24-hour streaming channel that will serve as the year-round destination for nonstop highlights of the UEFA ...
26/04/2024
Roku Streaming Homes Hit 81.6M
Despite tough competition in the streaming space, Roku reported solid results in Q1 2024, beating revenue expectations, with total net revenue up 19% YoY to $88...
26/04/2024
Sarah Farrell Named General Manager Of Pinewood Toronto Studios
LONDON AND TORONTO Pinewood Toronto Studios has appointed Sarah Farrell as general manager of the Studios in downtown Toronto....
26/04/2024
Quantum to Offer Advanced Filesharing Technology and Performance in StorNext and Myriad Solutions
Quantum to Offer Advanced Filesharing Technology and Performance in StorNext and...
26/04/2024
FilmLight Colour Awards welcomes 2024 entries and introduces new Emerging Talent' award
FilmLight Colour Awards welcomes 2024 entries and introduces new Emerging Talen...
26/04/2024
Picture Shop Announces Chris Evans as Head of Unscripted
Picture Shop Announces Chris Evans as Head of Unscripted Brie Clayton April 26, 2024 0 Comments Picture Shop announced Chris Evans will lead Unscripte...
26/04/2024
Participate in a Survey - The Impact of AI on Media and the Creative Industry
Participate in a Survey - The Impact of AI on Media and the Creative Industry Pascal Wagner April 26, 2024 0 Comments By participating in this survey,...
26/04/2024
Hi Barbie! Mattel Launching First FAST Channels on Samsung TV Plus
Toy maker Mattel said it is working with Samsung to launch its first free ad-supported streaming television (FAST) channels later this year....
26/04/2024
Marty Moe Named President Of Trusted Media Brands
Trusted Media Brands (TMB) said it named Marty Moe as president....
26/04/2024
Ron Howard Directs Jim Henson Documentary for Disney Plus
Ron Howard is the director on Jim Henson Idea Man, a documentary that premieres on Disney Plus May 31. Henson of course created Kermit the Frog, Miss Piggy, Big...
26/04/2024
Kraken Skate Away From RSN Root Sports for Deals With Tegna, Amazon
The ice continues to melt under the regional sports network business as the Seattle Kraken of the National Hockey League have made a long-term deal to broadcast...
26/04/2024
Warner Bros. Discovery Launches Olli First-Party Data Platform
Heading into the upfronts, Warner Bros. Discovery said it launched Olli, a first-party data platform advertiser can use for converged, targeted advertising camp...
26/04/2024
The Equalizer' Gets Season 5 on CBS
CBS has renewed the drama The Equalizer, which will see season five on in 2024-2025. Queen Latifah stars....
26/04/2024
The CW Inks New Deal for Miss USA, Miss Teen USA
The CW has entered into an exclusive multiyear broadcast partnership for the Miss USA Pageant and the Miss Teen USA Pageant. The 73rd Miss USA Pageant will air ...
26/04/2024
Fuse Urging Young Viewers To Vote With Blunt Campaign
Fuse Media isn't mincing words in a campaign urging its young viewers to register and participate in the 2024 elections....
26/04/2024
Neil Gaiman's Sandman' Universe Expands With Dead Boy Detectives'
Dead Boy Detectives, a series from Neil Gaiman about a detective agency staffed by ghosts, debuts on Netflix April 25. George Rexstrew and Jayden Revri are in t...
26/04/2024
The Story Collective opens largest film and TV studio in the heart of London
The Story Collective has gradually repurposed the former Mortlake Brewery to include production offices, workshops and sound stages By Matthew Corrigan Publi...
26/04/2024
Richard Perkett joins Amagi as chief product officer
Perkett joins the company following a 25 year career in product management, product marketing, engineering and user experience (UX) across multiple industries ...
26/04/2024
Teradek Announces Smaller More Robust Built-in Antennas f...
Teradek, the industry leader in wireless video transmitters and receivers, announced today the launch of new Bolt 6 LT 750 and Bolt 6 Monitor Module 750 RX with...
26/04/2024
Amagi Names Richard Perkett Chief Product Officer
NEW YORK Amagi has appointed Richard Perkett chief product officer (CPO)....
26/04/2024
NAB Board Election Results Announced
WASHINGTON, D.C. The National Association of Broadcasters (NAB) has announced the results of the 2024 NAB Radio and Television Board of Directors elections. The...