Re: IBM buying RedHat

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On Sun, Oct 28, 2018 at 5:22 PM Chris Murphy <lists@xxxxxxxxxxxxxxxxx> wrote:
>
> On Sun, Oct 28, 2018 at 2:17 PM, Antonio Trande <anto.trande@xxxxxxxxx> wrote:
> > "IBM to acquire Red Hat in deal valued at $34 billion"
> >
> > https://www.cnbc.com/2018/10/28/ibm-is-reportedly-nearing-deal-to-acquire-red-hat.html
>
>
> Official press release.
> https://www.redhat.com/en/blog/red-hat-ibm-creating-leading-hybrid-cloud-provider
>
> The reported deal is $34 billion, and Red Hat's closing market cap on
> Friday was ~$20 billion, that's a big price premium. I'm not a lawyer
> let alone a securities lawyer, but my guess is if Red Hat management
> had refused the deal, I think they'd face shareholder lawsuits. So
> anyone looking to be mad, it would be completely understandable, but
> this is basically a shareholder driven deal.
>
> Also, "distinct unit" is vague and next to meaningless. Until
> acquisition details are released, there's no way of knowing exactly
> what level of autonomy Red Hat is going to have, let alone what it
> means for CentOS and Fedora.
>
> For what it's worth, SUSE and openSUSE have been through a few of
> these over the years, and openSUSE is still kicking.
>

What worries me is precisely that we've never gone through a disaster
like what happened with the SUSE Linux community. We've prospered
because our corporate sponsor wasn't stabbing us in the back. That's
not to say there haven't been periods where Red Hat unintentionally
hurts us as a community, but they don't aim to do so.

In contrast, post Novell acquiring SUSE, there was a long period of
time where openSUSE had nearly no investment by SUSE. There were even
rumors that people were told to stay away from openSUSE or lose their
jobs. In addition to that, SUSE stopped contributing to KDE and being
involved in most upstream communities. That was also the same time
they switched from KDE to GNOME. They also laid off a very large
portion of their engineering staff.

Now, I wouldn't be unhappy if Red Hat decided to switch from GNOME to
KDE tomorrow, but the point is, IBM is not an open source company. And
they are likely to see little to no value in the open source
communities that Red Hat has fostered over the last 25 years.

Even the press release worries me, as it seems to indicate that the
only part IBM really wants is the OpenShift group. The rest of it
could go jump off a cliff for all it cares, and that might mean a loss
of investment across the board.

Fedora would be toast if that happened, since we have no other means
to keep ourselves afloat if Red Hat pulled the plug. We rely very
heavily on them to support a lot of the "grunge" work because it's
difficult and takes a lot of time to do. We also rely on Red Hat to
further develop Desktop Linux and Linux as a platform on the whole.
Without that, I don't know what we'll do.

Red Hat has been a company I've admired since I got into Linux back in
2000. I genuinely worry that IBM will smother Red Hat and kill one of
the largest producers of awesome FOSS with its bureaucratic
proprietary-ness.


--
真実はいつも一つ!/ Always, there's only one truth!
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