Stock market quotes, forex, financial news, forex tools – money-investing.com

IBM will pay $33 billion for Red Hat

 Breaking News
  • Global demand for oil grows The International Energy Agency (IEA) has published a very interesting study. So, in the next five years, global oil demand will grow about 1 million b/d every year. This means...
  • Tesla to build its fourth factory Elon Musk said that the company was planning to build the first plant in Europe. The German capital has been chosen for this purpose. It will be the fourth plant...
  • Facebook Pay is new payment system of famous social network The well-known company Facebook has announced the launch of its own electronic payment system Facebook Pay. Through the company’s official blog, we have found out that the service will operate...
  • Amazon to open a new supermarket chain in the States Amazon, the largest US online retailer, already owns several supermarket chains. The first of them called Whole Foods was purchased in 2017 and cost $ 13.7 billion. The chain specializes...
  • Energy Market News Today, at 8 a.m. Moscow time, Brent crude futures rose $ 0.14 (or 0.23%) – to $ 62.32 per barrel. We recall that yesterday the asset price lost 0.53% ($...
IBM will pay $33 billion for Red Hat
October 29
09:00 2018

IBM, computer equipment provider, intends to buy Red Hat for $ 33 billion. For both companies, this will be the biggest deal over their presence in the market.

IBM will pay almost $ 200 per share, which is 1.5 times higher than the current market price. The company management has already approved the deal. It will be done in 2019.

Ginni Rometty, CEO of IBM, noted that that transaction was extremely important for the company development. “Red Hat will give us the opportunity to become leaders in this market,” she explains.

When IBM focused on developing AI and cloud services, its revenue began to fall. This trend had persisted for 6 years. After that there was some growth, but the revenue fell again in the last quarter.

The company’s capitalization has been falling for a year. IBM has lost almost 20% in value. As a result of recent trading, the stock price has fallen by 6%.

According to S & P forecasts, this year IBM’s revenue will reach $ 80 billion, while earnings should be equal to $ 14 per share. Until 2011, when Gianni Rometty became the head of the company, its annual profit was equal to 107 billion US dollars (13.5 US dollars per share).

 

The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment