Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
Oct 29, 2018
IBM's (IBM, $124.79) Largest Deal: Will Acquire Cloud Firm Red Hat (RHT, $116.68) For $34 Billion

IBM's (IBM, $124.79) Largest Deal: Will Acquire Cloud Firm Red Hat (RHT, $116.68) For $34 Billion

In what could be the third largest deal in the history of U.S. technology, IBM will be acquiring open-source software company Red Hat for $34 billion. The combined entity could potentially emerge as the next behemoth in cloud computing – one of the most in-demand services today.

IBM will pay in cash to buy all shares in Red Hat at $190 each. IBM is advised by Goldman Sachs, J.P. Morgan and Lazard, while Red Hat is advised by Morgan Stanley and Guggenheim on the deal. If the deal passes  regulatory and shareholder approvals, Red Hat’s operations will become a part of IBM’s Hybrid Cloud division. The deal might close in second half of next year.

Cloud technology essentially provides services such as data storage, database management, networking, access to servers access , software solutions, analytics, intelligence and more via the internet. Dropbox, Flickr, Google Drive, Netflix, Microsoft Office 365 and Yahoo Mail are examples of cloud services.

IBM-Red Hat merger is expected to help businesses/users have a smoother transition or transfer of data between different cloud platforms, and to keep users' data secure irrespective of which cloud technologies they use.

This year saw several other major acquisitions in the open source space. Microsoft acquired code-sharing platform GitHub for $7.5 billion. Salesforce bought Mulesoft (a firm that helps to collate different software applications, data and devices) for $6.5 billion. Also, Cloudera and Hortonworks announced a $5.2 billion deal to merge.

According to IBM and Red Hat, their deal would be the "most significant tech acquisition of 2018."   .In recent times, IBM signed cloud contracts with Economical Insurance, ExxonMobil and Novis. What’s more, Red Hat is in partnerships with major cloud players including Amazon, Microsoft and Google - that means, following the IBM-Red Hat deal, IBM might be offering solutions to its current competitors as well.

IBM's  CFO Jim Kavanaugh told investors earlier this month that its cloud business raked in $19 billion in revenue , which is more than 20% from the same time last year. Its acquisition of Red Hat (IBM's largest deal ever) could potentially bolster its cloud solutions even more.

 

 

Related Tickers: IBM
Related Portfolios: TECHNOLOGY ETFs
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.