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?"
Obama Policies Will Bankrupt USA Tsarkon Reports
(Note: We are not a GOP-sters, Republicans or affiliated with any parties, and as George Washington warned against parties We do not believe in parties and, unlike most people, We evaluate every issue on a case by case basis and do not defer to the judgments of politicians who are corrupted and untrustworthy as a group.)
Obama is controlled by the same people as Bush see The Obama Deception documentary
Yuan Forwards Show China May Buy Fewer Treasuries, UBS Says
Anemic Treasury auction effects felt beyond bonds
The Sherminator Kicks Some Wall Street Ass
China Angry That Fed Is Deliberately Destroying The Dollar
China suggests switch from dollar as reserve currency
What are the reserve currencies?
Anatomy of a taxpayer giveaway to investors
Geithner rescue package 'robbery of the American people'
Geithner just put only the rich in Titanics lifeboats
Geithner Plan Will Rob US Taxpayers
A False Choice
Bargain-hunting house buyers wearing on sellers ajc.com
Time to Take the Steering Wheel out of Geithner's Hands
Socialising and Privatising
Fannie, Freddie to pay out bonuses
Fitch Raises Prime Jumbo Loan Loss Estimates Sharply
Chinas central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund
- Russia on an new world reserve currency: It is necessary to work out and adopt internationally recognized standards for macroeconomic and budget policy, which are binding for the leading world economies, including the countries issuing reserve currencies - the Kremlin proposals read.
- President Barack "The Teleprompter" Obama is deeply connected to corruption. Rahm Emanuel, his Chief of Staff, is radical authoritarian statist whose father was part of the murderous civilian-killing Israeli terrorist organization known as IRGUN who is obsessed with gun control and compulsory service to the country in a capacity which he has yet to define. (Think brown-shirts.) Barack is intimately connected to disgraced Illinois Governor Rod Blagojevich (Rahm inherited Rod's federal-congress seat). Barack Obama is also connected to William Ayers (who ghost-wrote his books); Ayers is a man who promotes the concept that civilian co
Can any free Java IDE Just Work(tm) with making simple executable .jar files?
.jars...sometimes. It takes a few rolls of the dice to find the right version which
will do it without asking you to do other arcane unnecessary bullshit. Some versions do it and others(Ganymede
included) won't without asking for more redundant bullshit(see: Netbeans).
Netbeans won't do it. It says it will generate a manifest with a main class but it dosen't. If I manually edit the manifest to point to the main class then Netbeans will magically ignore or overwrite it everytime. The internet forums tell me that it's my fault because I'm not adding layer upon layer of complexity dicking around with ant scripts because I want to show my friends a hello world application without making my friends compile and run it themselves in their own IDE. Many of us have friends who don't know or care what an IDE is.
Eclipse will make executable
Can any free Java IDE make their visual editor Just Work(tm)?
The Matisse editor in Netbeans is powerful and full featured. I can tweek every little ass-hair of every little component. Wait - what's all that crap in my source editor? It dosen't look familiar, and to add insult to injury, Netbeans is telling me that I can't edit some code? What the fuck are these imports and variables? Better copy and paste to Eclipse so I can make some sense of this bullshit...
Oh, shit. Not only does Eclipse not recognize half of the pasted code but Eclipse dosen't include a visual editor. No problem, the forums say, because it may be downloaded though Eclipse itself. Oh shit, it won't work with Ganymede. Once again, with Eclipse, it's time to roll the dice to discover which version actually works with the visual editor without broken dependency warnings and other bullshit.
It's a brilliant strategy to discourage inexperienced folks whose time matters(the operative phrase since we don't have 20 hours a day to roll dice trying to get things to work) from studying computer science.
It's also a brilliant strategy to discourage inexperienced folks whose time matters(see above) from using open source solutions since Netbeans and Eclipse are so concerned with filling your raster with bloat instead of making things Just Work(tm). In Soviet Russia, open source copies Microsoft.
Red Flag Linux....the PRC, of course.
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?
Citigroup....
That belongs to the tax payers now, right? That means we will ALL own RedHat!
--
My parents went to Slashdot and all I got was this lousy sig.
Whereas I'm not too concerned about Red Hat Linux (especially since Oracle already has a version of it they brand as their own), my *real* concern is for JBoss, one of the best app servers out there.
If Oracle had not bought BEA, I'd think they'd buy up RH and replace oc4j/App server with JBoss, but since they *did* buy BEA, they now have WebLogic and JRockit; they'd probably just put JBoss out to pasture, which would leave a lot of folks who have deployed JBoss high-n-dry.
Yes, they wouldn't do it right away and yes, there's always the possibility of a fork, but it would make it that much harder of a sell to the boss who wanted to go with JBoss because it was a lot cheaper than what Oracle wanted for their app server.
I can't think of a good match. Maybe IBM just because IBM's service arm seems to be doing really well, but then that would be bad for the whole industry for IBM to own an enterprise Linux distro.
It would be kinda funny if Microsoft bought them and actually tried to make money off Red Hat Enterprise Linux, though....
LedgerSMB: Open source Accounting/ERP
Does this mean we're going to have those "What's in YOUR wallet" commercials switch to "What's in YOUR computer?" I can see it now...
"Hi, I'm a Mac."
"Hi, I'm a PC."
"Hi, I'm a viking maurader. Bleeeeaaarrrgh!"
Red Hat Linux: Sneak attack, bitches.
#fuckbeta #iamslashdot #dicemustdie
SCO is the obvious choice.
So Oracle and Citigroup are thinking of buying Red Hat, eh? Perhaps they envy the freedom that Red Hat possesses. Perhaps they wish to control Red Hat in a way that no others could. Did they hear a whisper from Microsoft?
I think that the worst possible thing is for Red Hat to be consumed by a larger company such as Citigroup or Oracle. Their statements and actions demonstrate little understanding or regard for the culture in Red Hat.
Their wish to buy Red Hat is akin to the wish to put a flowing river in a bucket. Once the water is in the bucket, it is no longer flowing.
To put it differently, to derive the benefits of Red Hat, they would either just buy the software they produce and use it, or buy their stock and sit on it. But as soon as they try to control it at their own whim, that which was free and living, will squirm away, somewhere else.
Imagine what will happen to all the customers, developers and channel resellers who trust Red Hat now. It will simply not be the same with a new master.
I hope Red Hat can maintain their indepence for the sake of everyone who depends on them.
The diversity and expression of human opinion is essential to human survival.
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.
It wouldn't surprise me to see IBM end up owning Sun, Red Hat and Microsoft in the end.
The problem with buying a company like Red Hat is very simple: you end up with nothing. It's a company basically of, by, and for open-source near-zealots.
If you buy it and try to control it, the talent leaves and you bought a client list.
I was wondering of there is a play now for IBM and Sun to take Red Hat under their wing as they move to the "Open Cloud"... That could set up IBM/Sun vs. Microsoft/Amazon/Yahoo?! Background info: http://cloudstoragestrategy.com/2009/03/sun-ibm-open-clouds-ahead.html
When I was at Red Hat, I assumed the scenario would be that Oracle would make a hostile takeover bid, as they are wont to do, and then IBM would come to the rescue with a competing offer that wouldn't gut the soul of the company quite as badly. Now that IBM is in talks with Sun, that seems less likely, unless the IBM/Sun deal falls through, in which case it's a no-brainer for IBM.
Failing that, the next best candidate, in terms of the good of the community, would be Intel. I mean no disrespect to AMD in this regard, because it's not really about hardware, but rather Intel's role as a technology mutual fund that happens to have CPU, chipset, and networking hardware in its portfolio. Adding a Linux vendor would further establish them as a developer of core computing technologies, in a role as a partner rather than a competitor to Oracle and IBM. Intel has a long history of working well with the open source community, which has certainly played a role in their acquisition of some top Red Hat talent over the past few years.
With all due respect to the many dedicated Linux engineers at Oracle, I don't trust Larry Ellison as far as I can throw him. Nor do I trust the Red Hat shareholders, who are overwhelmingly financial institutions on the brink of bankruptcy, to take any sort of long term view when considering competing offers, which is why I would not be shocked to see them cash out to Oracle, even knowing full well how the company would be gutted, because they so desperately need the money right now just to stay solvent. I just hope that when Oracle makes the move, which seems all but certain if the IBM/Sun deal goes through, that there's someone else around with a genuine commitment to the community and deep enough pockets to make a cash offer, since a stock deal under terms typical for large acquisitions wouldn't give the institutional shareholders the liquidity they need.
There's no failure quite as dissatisfying as a complete and total solution to the wrong problem.
...for this will breathe life into the issue of making KDE the default desktop on Redhat. But as of now, the idea of KDE on Redhat (as default) is always dead on arrival.
That should be made clear.
It was only a Citi analyst that raised the possibility of Red Hat being a takeover target.
I've been impressed by Red Hat's ability to consistently make money and perform well. They were one of the few profitable companies during the big .com bubble burst at the turn of the century, and it's good to see them repeat this success story.
For that reason, I think that Red Hat just won't be very appealing to a buyer who wants to interfere. I think the two most likely interested buyers would be squatters who just want a secure investment and therefore won't interfere or truly enlightened people who know the real power of a principled open-source support company.
I think they're likely to stay independent for some time, though, so long as they can stay under the radar of the government of the United Socialists of America.
Larry Ellison and Oracle are beginning to lust heavily over Red Hat...I fear most of the best parts of RH would get lost in the catacombs of Oracle and never see the light of day again... Sun seems to be busy playing coquette to IBM (although HP would be a better fit). Novell would be a logical choice and would (finally) promote some consolidation in the Linux realm. Apple already has an OS based on a (flamebait acknowledged) superior Unix derivative. I would instead look to Cisco or Dell. Cisco has no in-house OS (other than IOS of course) and with their recent entry into the server hardware market it would be a smart buy, although not necessarily for RH. Dell would be an ideal combination, as Michael Dell is already a Linux proponent, although of a slightly different flavor. Dell isn't as integrated as their main competitors and has no real software presence, however their close association with Redmond might be a giant monkey wrench. If Dell wanted to grow up and really play with the big boys (the ones who are left anyway), they would grow a pair and go bold. Who else has $4-6 Billion in cash lying around looking for more software presence...Adobe? Google?
Nothing to see here but us trolls...move along...
There is no such thing as a hostile takeover. If you offer enough money that the majority of shareholders sell to you, what's hostile about that?
If Red Hat wants to stay independent maybe they should buy back their stock from the market, that way no one can buy them.
Oracle was to buy RedHat, which makes a lot of sense to their overall business model, because Fedora would be the first to go. Linux on the desktop doesn't make any money, as the CEO of RedHat recently said. Any potential buyer wants the profitable support business. The desktop is a waste of resources as far as they are concerned. Remember people, public companies exist solely to make money for their shareholders NOT to support the OSS community at large.
Users. This is win out; either the you got there. Or backwards. To the of business and was Poor priorities, If you do not Area. It is the downward spiral. In the gay niggers it transforms into ooficers. Others users of NetBSD in posting a GNAA by simple fucking here, please do
in TFA there is no mention of Citigroup looking to buy Redhat; just a mention that a Citigroup stock analyst upgraded his target share price to $17 and kept the recommendation to "hold". ./ has gone and commented on how Oracle culture would be compared to Citigroup's whereas that's not even the point..
Once again everybody on
Sheesh people, the linked article is probably under 250 words. Could you not have given it a read? Did it not strike you as something strange that a bank would want to buy a software vendor?
Artificial intelligence is no match for natural stupidity
This Slashdot story was posted by a Slashdot editor who calls himself "Souls kill". The story was suggested to Slashdot by someone who calls himself "Head Dunce". A dunce is "a person regarded as stupid". (Please note, I'm not suggesting that the Slashdot editor "kills souls", he is suggesting that. I'm not calling the person who wrote the story a dunce, he is calling himself that.)
The Slashdot story links to an article in Forbes Magazine. Will Forbes and other "financial" publications continue to pretend to offer useful financial advice when they did NOTHING to stop the corruption of big U.S. banks taking on debt 20 to 60 times their assets?
The Forbes article was written by someone named "Ruthie".
The "takeover" talk appears to be completely fraud, in my opinion:
1) Citigroup is not thinking of buying Red Hat. Yes, the Slashdot story suggests that, but the stories to which Slashdot links don't suggest that.
2) Citigroup has been extraordinarily destructive; it helped cause the present job loss throughout the United States. The article implies that Citigroup has a lot of Red Hat stock and is trying to manipulate the price.
3) The Slashdot story links to a Reuters story that says, "Linux software maker Red Hat Inc (RHT.N) reported profit ahead of Street projections on Wednesday , helped by cost cuts and a stock buyback, sending shares up 8 percent." Someone is apparently manipulating the price of Red Hat stock, because "22 cents vs Street view 20 cents" is certainly not news that should cause people to value Red Hat stock so highly that the shares go up 8 per cent.
4) The Reuters story only says that some un-named people on "the Street" predicted something, and Red Hat did a tiny bit better. Remember that "the Street" is responsible for the present job loss throughout the United States. They are, in my opinion, vicious crooks, who stole from and are stealing from the taxpayers because corrupt politicians believe they are "too big to fail".
If you aren't a full time stock investor with plenty of inside information, you should not be buying stocks. Those with little experience just lost 40% of their money!
We deserve better leaders than "Souls kill", "Head Dunce", Forbes, Ruthie, Citigroup, "the Street", and politicians manipulated by those who don't know any better way to make money than by paying to corrupt their own government.
I can't imagine RedHat has any particular value to any existing software vendors. A hardware vendor might make sense, but it would have to be a huge one. Anyone outside of the IT industry would be insane to purchase RedHat.
Clearly it would be beneficial to get a hold of RedHat's patent portfolio.
Also it would make sense to acquire a competitor, though I'm not sure who that would be. Microsoft would encounter regulatory roadblocks, Sun is on the verge of being bought-out itself. IBM doesn't see RedHat as any kind of threat; and I don't think they make enough on Linux services to want to buy a Linux vendor solely as a hedge.
Oracle seems to be a natural choice. RedHat has been pushing it's database and application server stuff for a while as a cheaper alternative to Oracle. Like another poster said, it would be beneficial for Oracle to absorb RedHat to support it's database products and eliminate a competitor. But it's not as though Oracle would be in any type of position to capitalize on any of RedHat's other markets. And it's not as though RedHat is much of a threat to Oracle anyways, since their products are in completely different price-ranges.
It would be interesting to see a company like Cisco buy RedHat. They could marry a rack of servers with the Cisco logo with a pared-down, remote-terminal type RedHat desktop that would run on a company's existing desktop hardware, only with much higher security and easier management. No anti-virus needed. No more time-consuming desktop patch management. Higher performance, more flexibility, and the latest buzz-word, Linux! It would be an easy way to jump into the server, desktop, and cloud markets all at once. And it would be an easy sell in a down economy, to companies that are weary of upgrading to Vista. Merge the Windows server and Cisco network admins. Outsource to a hosted Exchange service if you really need that, otherwise run a basic cross-platform groupware service on your new Cisco servers. It could work.
"I assumed blithely that there were no elves out there in the darkness"
Red Hat is just a company. Let Oracle buy it if they want. Debian is another matter. When that goes, Linux is doomed.
That's worth bearing in mind.
If i were Redhat I would be saying no to potential shoulder surfer owners looking to maximise profit without regard for the clientelle.
Every language has a way of expressing that something is small or cute, or cute and small, called the diminutive. In English, the diminutive is formed by adding -y or -ie. In Thai, it is formed by using a one-syllable name, like "Nok" for the name of a girl; those who want to be considered responsible adults use multi-syllable names. In Japanese the diminutive is formed by adding -ko, as in the name of a friend of mine, a grown woman, Noriko. In Portuguese, the diminutive is formed by adding -inha or -inho.
So the Forbes.com author Ruthie Ackerman is an adult who has chosen to continue using a childhood name, a name that suggests that she is small and cute. That tends in the direction of causing me to have less confidence in her judgment.
The most important of the above is the RH staff. If citigroup/... were to buy RH and do the ''wrong'' things the staff would simply decamp, create another company ('BlueBoot'), take a copy of all the source code (its all GPL remember) and the RH customers would follow the staff for their support.
Any clueful potential purchaser would realise the risk that what they bought could just evaporate.
A good buyer for RedHat? I can't see one, because anyone big enough to buy that, imho, is not suitable to control it.
Any company some involved with computers/sw will have vested interests in steering it towards their own goals and in the towards damnation. Any company totally unrelated to computers would be in it for the money and we know how that story usually ends.
A good owner for RedHat? I'd say Torvalds or Cox, but I don't see either one on the potential buyers list...
1 Earth is warming, 2 It's us, 3 it's royally bad, 4 we need to take action NOW
you did good so far, and beat expectations even in a global recession. that means you're doing it right.
there is no need to bring in additional executive board/shareholder meddling by getting bought.
keep what you are doing on your own.
Read radical news here
Now it's on Larry's christmas shopping list. He doesn't stop until he gets what he wants.
The only upside I see is getting Oracle shares out of the deal. Why not retire?
Good luck uncle Larry and Red Hat. OTOH Red Hat really is a smart company, if they don't like Larry's offer they might survive, but ol' Uncle Larry likes to destroy the elmos that aren't on the shelf during christmas shopping season. LOL!
Come on guys, these are the same people who were smart asses thinking they could make massive returns with zero risk all because they thought they could model investments and economics around mathematical equations - ignoring the fact that economies are made up of people who are a mixture of rational and irrational motivations.
So please inform me, why should anyone listen to these boy wonders on this matter? I might as well ask my grandma on her views regarding the possibility of Oracle buying out Red Hat.
This is how Citigroup is going to spend OUR bailout money.
Cue the lynch mob.
Professional Politicians are not the solution, they ARE the problem.
What Red Hat ran into is not being profitable in a bad economy, but one of the dark sides of being a publicly traded company.
When Canonical does start to turn a profit, it doesn't have to worry about this issue because it is privately held.
Going public to me seems to be a double-edged sword. It is a smoke and mirror way to raise a lot of capital, but it also sets you up to have others come in and try and tell you what to do...and it could be someone that you don't really want telling you what to do (example: eBay buying shares in Craigslist).
Transporter_ii
Doctors destroy health, lawyers destroy justice, universities destroy knowledge, religion destroys spirituality
It's a bank, it's a software company, what the hell else? Buy a chain of beauty colleges? What a lousy fit. Dumb.
RedHat could defend itself against hostile takeover attempts by adopting some form of "Poison Pill". Such a device would render whatever makes Red Hat valuable have no value to a hostile bidder. An example would be what Peoplesoft did to thwart a takeover from Oracle. See http://en.wikipedia.org/wiki/Poison_pill
"I believe in Karma. That means I can do bad things to people all day long and I assume they deserve it." : Dogbert
Better Oracle than Citigroup obviously. Nothing wrong with being bought as long as the new owner doesn't meddle with a good business plan.
Okay, rephrased: Thais who emphasize their one-syllable nicknames when they are adults are emphasizing, and intending to emphasize, their lack of responsibility.
It seems that this economy has inspired a lot of businesses to move to Linux
It's the economy folks. Businesses turning to Linux has nothing to do with the quality of Microsoft products.
While being profitable does raise the incentives to buy Redhat, being profitable also lowers the incentives to sell Redhat. On the flip side, it may make sense to sell if the buyer is more profitable, but then the buyer doesn't have as much incentive to acquire.
It's not a dark side. Even if Redhat does sell, it's because their shareholders wanted to sell. It's only going to happen if shareholders on both sides perceive a benefit.
Don't blame me, I didn't vote for either of them!
If you set aside the already mentioned IBM, Sun, and Oracle.. I suppose Hp could be considered.. You could throw in Dell too, but that would probably make people actually cry.
waiting for ad.doubleclick.net
As a old time jack-of-all-trades/sometimes DBA, I have been seeing Oracle sitting on its fat a** for quite some time, content to gouge customers with, by now, over-priced & over-engineered software. The vast majority of my colleagues (full-time DBAs and such) have been stating for just as long that Oracle support is not worth the price you pay for licensing. Larry & co. are now taking their market share for granted, like Novell & WordPerfect used to (to give two easy examples).
From where I stand, Oracle is basically giving the market away to M$. I used to laugh at the very notion of this, but too many recent events I cannot talk about (the joys of working for the MIBs... (ok, the suits are not all black, but you get the idea)) have lead me to this conclusion. I am not happy about this, but I can't deny it any more. Oracle should revise their pricing structure and the way their products work: we are no longer in the 1980s, Larry! What was acceptable then is not any more!
And, to make matters worse, Oracle has turned into the new CA (Computer Associates): too many software that was acquired by them have simply disappeared out of sight. Like 99.999% of what CA has bought, that used to be good sellers and had good visibility, but that disappeared overnight when CA got their slimy tentacles on it.
Finally, to add insult to injury, Oracle, like Sun, still does not grok what FLOSS is.
No, Oracle should not buy any Linux distro or anything resembling a Free *nix. In the case of Red Hat, that would be the absolute worst thing that has happened to them. It would be just as bad as if M$ would have bought them out.
Some time ago, it would have been an intriguing concept. Not any more.
Redhat once paid people to write crazy programs like Enlightenment. Then they focused on a little less crazy ideas like web servers. Now they'll take the next step & become even more boring. Wonder if anyone is still there from the glory days of 1997?
If you would give the issue a little thought, you would realize it is a very useful view of the world. Avoidance of responsibility is a huge issue. When people use the diminutive, they signal that they don't want responsibility.
That's a widely held perspective. Consider George W. Bush, for example. He called Russian President Vladimir Putin, "Putie-Poot". Putin smiled for the cameras, but the BBC called that an "act". The BBC writer said the nicknames were considered "a sign that parts of Dubya - his name for himself - never really grew up." "Putie" is the diminutive of Putin, and "Poot" is a childish word for defecate.
Daengbo, I have great respect for your opinion. You have spent more time in Thailand than I. You have spent more time teaching Thais English than I.
But I respectfully have a different opinion. I was always focusing intensely on cultural differences, even differences between Thais. In my classes, we often talked about cultural differences between Chinese-Thais and ethnic Thais, for example.
You don't seem to have that focus. Perhaps you didn't notice that, in my opinion, a childish sense of irresponsibility cripples the Thai culture. That is a problem throughout the world, of course. However, Thais, particularly Thai women, signal that sense of irresponsibility when, at a particular time, they choose to use their short nicknames. That choice doesn't always mean much in terms of action, but it is an indication of what the person is feeling at the time.
Am I mistaken, or did we -- the U.S. taxpayer -- just shell out some $100 Billion dollars plus to save this idiots? How the hell are they buying anything???
If Citibank/group buys anything you are involved/employed/invested in, RUN like the wind...
I've been an Oracle Apps DBA for 10+ years and a RHEL admin for about 5.
I have yet to have a single client move to Oracle Enterprise Linux and every client that has considered it decided against it for one reason - Oracle's Support sucks.
Sure, great, I'd get all my support in one place - (strike) India (/strike) Oracle. Unfortunately, that support is horrendous.
I had Oracle work one linux related issue for a client, as a top severity issue with Oracle. In short, Oracle took a week on it, missed fixing the critical issue, and didn't have an analyst available when they said they would (during a mission critical downtime to address the issue).
Sorry, no.