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> Can someone explain why Red Hat is so valuable? The better question is, why did it cost so much? First of all, Red Hat makes a lot of money and it has a soli
by gridlockd 7y ago
> Can someone explain why Red Hat is so valuable?
The better question is, why did it cost so much? First of all, Red Hat makes a lot of money and it has a solid market position.
Secondly, you tend to overpay in an acquisition, because it is a huge amount of sudden demand.
Lastly, pretty much all stock is "overvalued" right now, because money is cheap (see my other comment).
> Why would IBM put such a big bet?
Because it is a giant corporate monstrosity that cannot really innovate by itself anymore. It still can buy things though.