Comment by rafaelturk
7 years ago
This is a massive cash expenditure. IBM's biggest bet to be back into the cloud game. Given the amount of cash involved this might be IBM's last card, at least from an M&A perspective, so this deal needs to work.
RedHat is much smaller than IBM, however far better managed with a clear product roadmap, lean sales and customer support. In a good scenario a reverse takeover will take place and RedHat management will take control and lead new IBM to a better future, however this is very unlikely.
IMO: This is great for RedHat shareholders, terrible for the new IBM co...
There are strong rumors that IBM will be selling/spinning off its services group so perhaps that’s the funding justification?
If this kind of a split were happening it would be more accurate to describe it as the services group spinning off its product department.
That's an interesting thought, though Red Hat has a significant services group too, so they'd still have one afterward.