How IBM is Destroying Red Hat’s Independence: The $34 Billion Betrayal
IBM paid $34 billion for Red Hat with promises of independence. Six years and 91% revenue growth later, they’re breaking every promise…
IBM paid $34 billion for Red Hat with promises of independence. Six years and 91% revenue growth later, they’re breaking every promise. Here’s the timeline.
Thirty-four billion dollars. Six years. One broken promise after another.
IBM acquired Red Hat in 2019 with explicit guarantees of independence. “Red Hat will continue to be led by Jim Whitehurst and Red Hat’s current management team,” the press release said. “Red Hat will operate as a distinct unit within IBM.”
The Linux community celebrated. IBM, not known for altruism, had promised to let Red Hat be Red Hat.
We should have known better.
The Numbers Tell a Different Story
Red Hat’s revenue in 2019 was $3.4 billion. By 2025, that number reached $6.5 billion. That’s 91% growth in six years.
Red Hat now represents roughly 10% of IBM’s total revenue, but accounts for nearly a quarter of IBM’s Software segment, which itself drives 45% of the company’s business.
