Reply to post: Over-paid ...

Official: IBM to gobble Red Hat for $34bn – yes, the enterprise Linux biz

Jove Bronze badge

Over-paid ...

Looking at the Red Hat numbers, I would not want to be an existing IBM share-holder this morning; both companies missing market expectations and in need of each other to get out of the rut.

It is going to take a lot of effort to make that 63% premium pay-off. If it does not pay-off pretty quickly, the existing RedHat leadership with gone in 18 months.

P.S.

Apparently this is going to be financed by a mixture of cash and debt - increasing IBM's existing debt by nearly 50%. Possible credit rating downgrade on the way?

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