Red Hat — Stand Alone Or Get Bought?
head_dunce writes "It seems that this economy has inspired a lot of businesses to move to Linux, with Red Hat posting profits that beat everyone's expectations. There's a dark side to being a highly profitable company in a down economy, though — now there are talks of Citigroup and Oracle wanting to buy Red Hat. For a while now, we've been watching Yahoo fend off Carl Icahn and Steve Ballmer so that they could stay independent, but the fight seems to be a huge distraction for Yahoo, with lots of energy (and money) invested. Will Red Hat stay independent? What potential buyer would make for a good parent company?"
I have to admit i've always been at a total loss as to why redhat could have the same sort of market cap as someone like Sun (at least pre-takeover rumours).
I suppose it's certainly more profitable to take other people's work and package it up, but what does that offer to a buyer?
I know they look attractive right now because buying Canonical is out of the question but I just don't see them lasting much longer with their current Linux distribution. Ubuntu is based on a better design and is already overrunning RedHat.
I foresee a RedHat flavored Ubuntu being released... Either that or RedHat is going to crash and burn.
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