IBM Buying Red Hat as It Focuses on Cloud; S&P Downgrades Buyer as Red Hat Stock Lags Bid
IBM agreed to buy Red Hat in a $34 billion deal. "It changes everything about the cloud market," said IBM CEO Ginni Rometty, saying her company will become the biggest hybrid cloud provider and looking toward a future where companies…
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move business applications there, not just rent cloud computing. Citing concerns about debt IBM will likely take on, Standard & Poor's cut its credit rating a notch and said further downgrade is possible. Monday, the first day of regular trading after the deal, Red Hat stock rose to less than the $190 per share cash price. Red Hat didn't comment. The stock closed 45 percent higher Monday at $169.63, an 11 percent discount to the takeover price.