[TriLUG] Red Hat + IBM, good or bad?

[Matt Flyer via TriLUG]

The zerohedge article was interesting.  It looks like IBM is trying to
make some sort of Hail Mary pass at getting into the cloud.  The
article also says that they will be doubling their (long term) debt to
about $50B if I recall (it isn't coming up at the moment).  This sounds
dangerous to me as long term debt has brought down many a big company.
 One thing to look for would be their long term debt to actual physical
assets; and pay attention to whether they're trying to claim an
excessive amount of intangible assets.  Do they have actual reenue
growth?  Another thing the article mentioned is that this will put an
end to their stock buy back, by depleting their cash, and it hints at
the notion that had they not done been doing so that the company
financial data would have put their stock at a much lower valuation.
 In addition it is questionable what sort of debt/bond rating they will
have coming out of this acquisition.
 


 
On Tue, 2018-10-30 at 12:31 +0000, John Vaughters via TriLUG wrote:
>  
> Definitely caught my eye. A 63% premium on the stock price? WOW!!!
> That right there throws suspicion on the deal. Not very often do you
> see that much premium on a market price.I guess it stops any share
> holder revolts for sure. Still irritated I am out of RHT.
> John Vaughters    On Monday, October 29, 2018, 10:44:53 AM EDT,
> William Sutton <william at trilug.org> wrote:  
>  
>  For anyone interested in the financials, I recommend reading the
> following 
> analysis posted on ZeroHedge (it isn't good):
> 
> https://www.zerohedge.com/news/2018-10-28/desperation-move-ibm-buys-r
> ed-hat-34-billion-largest-ever-acquisition
> 
> William Sutton
> 
> On Mon, 29 Oct 2018, John Vaughters via TriLUG wrote:
> 
> > 
> > 
> > 
> > > 
> > > I don't think they can retroactively claim code that's already
> > > been released under the GPL 
> > Absolutely they cannot change existing GPL. What is out there is
> > out there and only code going forward is at risk.
> > 
> > Great case is MySQL and MariaDB. Last GPL taken and started a new.
> > Open Source Genie out of the bottle.
> > 
> > We agree it is not likely a huge issue. I too would jump to Debian
> > if need be, actually I have spent quite a bit more time with them
> > in the past few years anyway due to their dominance in the embedded
> > world.
> > 
> > John Vaughters
> > 
> > 
> > 
> > -- 
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