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View Full Version : Rumor:Is Microsoft considering buying out Red Hat?


RobertoOrtiz
05-16-2005, 10:36 PM
Ok I am posting this and running for safety!

Quote:
"As David Berlind recently pointed out in his piece Is Microsoft considering acquisition of Red Hat? (http://blogs.zdnet.com/BTL/?p=1369) Microsoft could see Red Hatís acquisition as a nice way to undermine IBM, but might not consider that a sufficient reason to do it. That, of course, is Microsoftís perspective, but what about Red Hatís? This is a company, remember, that wants to be Microsoft and, like Microsoft, makes its living packaging and selling other peopleís ideas.
From Red Hatís perspective this could be a marriage made in heaven ó offering both a defense against the two greatest strategic threats it faces and a graceful way for key players to fold their tents and steal away into the night."

>>Link<< (http://blogs.zdnet.com/open-source/index.php?p=275)

-R

Spater
05-16-2005, 11:06 PM
OH CRAP *runs for cover*

Xevious
05-16-2005, 11:36 PM
I dont know if I remember this correctly but I thought Michael Dell just recently invested a lot of money in Red Hat. Actually I'm not sure if it was Red Hat or another linux company.

I wonder if there is a connection....

opus13
05-16-2005, 11:56 PM
I dont know if I remember this correctly but I thought Michael Dell just recently invested a lot of money in Red Hat. Actually I'm not sure if it was Red Hat or another linux company.

I wonder if there is a connection....

i was thinking of that. if MS makes a per share offer or a trade in offer, m.dell could make a killing.

its totally worthy of a conspiracy theory.

Beamtracer
05-17-2005, 01:31 AM
:banghead:

sundialsvc4
05-17-2005, 01:44 AM
Actually, Red Hat (like all Linux vendors) is really in a very unusual situation with respect to "being a takeover target," and that is ... it really doesn't have anything proprietary to sell. It has a brand-name and a customer base and a few tools (like Tux) that it does not distribute to everyone... and it has certain modifications to Linux that it also does not distribute to everyone... but most of what it "can call its own," everyone-else can also.

Microsoft may well make investments in Red Hat, as it has done many times (and quite profitably) with Apple, but it can't "own Linux" thereby. And I don't think that MS is seriously trying to do such a thing. MS could easily accomplish a (yet another) very profitable investment for itself simply by investing in Red Hat; it would, imho, accomplish little or nothing more than this by purchasing the company as a whole. Consequently, I would be very surprised if MS's board of directors made such a move.

The one thing that Microsoft has to bring to the table ... is money. Not as much money, mind you, as IBM has, but nonetheless enough money to guarantee liquidity to anyone they choose to invest in. Like any investor, one thing they expect (and need) to get in return for the investment is a measurable amount of control. In the case of Linux, however, the question is, "control of what, exactly?" There is no copyright here. A profitable investment in Red Hat would be considerably easier to engineer, and much less expensive, than a buyout.

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05-17-2005, 01:44 AM
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