IBM - FREE MONEY!

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Dear Traders,

IBM has struck a deal to acquire cloud software company Red Hat for $34 billion.

IBM will pay $190 per share for the software company, which it described as the world’s leading provider of open source cloud software, a more than 60% premium to Red Hat’s closing stock price of $116.68 on Friday. Shares traded upwards of $175 in June, but disappointing earnings combined with a volatile market had seen the price drop sharply.

Here are the key points from the deal announcement:

IBM will acquire all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34 billion.
JPMorgan advised IBM on the deal and provided most of the financing. Guggenheim Partners represented Red Hat on the deal.
IBM will remain committed to Red Hat’s open governance, open source contributions, participation in the open source community and development model, and fostering its widespread developer ecosystem.
IBM and Red Hat also will continue to build and enhance Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to the IBM Cloud.
Red Hat will join IBM’s Hybrid Cloud team as a distinct unit, preserving the independence and neutrality of Red Hat’s open source development heritage and commitment, current product portfolio and go-to-market strategy, and unique development culture.
Red Hat will continue to be led by Jim Whitehurst and Red Hat’s current management team. Jim Whitehurst also will join IBM’s senior management team and report to Ginni Rometty. IBM intends to maintain Red Hat’s headquarters, facilities, brands and practices.
“IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses,” Ginni Rometty, IBM chairman and CEO, said.
“Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation,” Jim Whitehurst, president and CEO of Red Hat, said.







Let's talk about TA now:

Weekly RSI is OVERSOLD !
Daily looks superrr zweeeeet! I see a possible divergence!
Hourly chart confirms my Bullish Divergence.

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Key resistance points: 132$ - 145$

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IBM trading lower in pre-market !
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I hope all of you enjoyed that free 5% jump it did when markets opened!
Who said you can't make money over bad news :D ?
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