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redhat was trading at around $120 last week and IBM announced "Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34
by liveoneggs 8y ago
redhat was trading at around $120 last week and IBM announced "Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34 billion."
That $120 was really high for redhat, who just crossed the $100/share price last year. (unless you count year 2000/dotcom-IPO-madness) RHT's market cap was previously $20B.
- candiodari 8y agoNote that IBM is buying every last Redhat share here, so of course it has to pay more than the price for "just one more" share. That's not weird. It's a bit much as these things go, but 20-30% over the share price would not raise any eyebrows.
- liveoneggs 8y agoyeah it's not raising my eyebrows but I was trying to give the data to explain why an established and somewhat profitable company (like redhat) would sell to a player like IBM. It's just a lot of money to turn down!