IBM closes in to rubberstamp a $34 billion buyout deal for Red Hat


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IBM closes in to rubberstamp a $34 billion buyout deal for Red Hat

Later on, Tuesday, the 9th of July 2019, IBM (International Business Machines Corp.), the New York-based multinational information technology conglomerate headquartered in Armonk, said that, it had reached a $34 billion cash and stock takeover deal for software company Red Hat Inc., as the US-based tech titan had been looking to ramp up its cloud computing businesses in order to stay competitive amid a market backdrop, which had already become congested by cloud technology giants likes of Amazon cloud services alongside Microsoft’s Azure.

In point of fact, highlighting small- and medium-scale businesses drive towards cloud computing, on last October, IBM had agreed to purchase Red Hat, remarking the tech tycoon’s biggest takeover ever. However, the IBM CEO, Ginni Rometty, who had been holding the office since 2012, had faced off multiple hurdles to steer the company towards fast-growing segments likes of cloud computing, cloud-based software and services, leaving behind the International business machine’s traditional nomenclature.

Following Tuesday’s (July 9th) announcement, adding that IBM’s new cloud operation would include hybrid cloud applications, Rometty said at an interview, “Customers want hybrid cloud applications because they look at their IT and they say, Look I can’t just throw it all out and rebuild it, and instead want a mix of public and private cloud applications with one platform across it”.