Red Hat soar on IBM deal

Published 10-29-2018

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NEW YORK (AP) - Shares of Red Hat skyrocketed at the opening bell Monday after IBM, in the biggest acquisition in its 100-year history, acquired the software company.

The $34 billion stock deal translates to $190 per Red Hat share - a 63 percent premium to the closing price Friday for the Raleigh, North Carolina company. Red Hat Inc.'s stock soared almost 50 percent in early trading.

The path for revitalization for IBM could be in the cloud, and IBM's Virginia Rometty said Monday that the deal is about resetting the cloud landscape.

Rometty said that hybrid cloud - when companies use a mix of on-site, private and third-party public cloud services - is an emerging $1 trillion opportunity that the companies want to be prepared for.

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