US/Europe Event-Driven Analyst

John DeMasi

CFA, CPA (New York State, status: inactive) with 20+ years on buyside (PM & analyst) at numerous hedge funds and proprietary trading desks in NYC and London, covering North American and European event driven investments.

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Event-Driven

<div class="content-highlight">
<p>An analysis of IBM’s announced acquisition of Red Hat.</p>
</div>
<p>On Sunday, October 28<sup>th</sup>, 2018 <a href="https://www.smartkarma.com/entities/1064" target="_blank" data-smartkarma-citation="entities:1064:1">Intl Business Machines (IBM US)</a> and <a href="https://www.smartkarma.com/entities/4024" target="_blank" data-smartkarma-citation="entities:4024:1">Red Hat Inc (RHT US)</a> jointly announced Big Blue’s acquisition of Red Hat for $190 per share in cash or about $34 billion. The price was a huge premium to Red Hat’s previous close on Friday and sent thunder claps throughout the Cloud community. Not only was it IBM’s largest acquisition ever, but it was also a bold, risky gambit by IBM head Ginni Rometty to pull the yoke back on IBM’s stalled growth and loss of altitude. But would the  acquisition even make it off the ground?</p>
<p>Red Hat is trading at a hefty discount to the deal price, creating uncertainty over prospects for the deal’s successful completion. In this piece, I look at some of the key factors in determining how things will play out and give my take on whether Red Hat will be bought or land back on the discount rack.</p>


An analysis of IBM’s announced acquisition of Red Hat.

On Sunday, October 28th, 2018 Intl Business Machines (IBM US) and Red Hat Inc (RHT US) jointly announced Big Blue’s acquisition of Red Hat for $190 per share in cash or about $34 billion. The price was a huge premium to Red Hat’s previous close on Friday and sent thunder claps throughout the Cloud community. Not only was it IBM’s largest acquisition ever, but it was also a bold, risky gambit by IBM head Ginni Rometty to pull the yoke back on IBM’s stalled growth and loss of altitude. But would the  acquisition even make it off the ground?
Red Hat is trading at a hefty discount to the deal price, creating uncertainty over prospects for the deal’s successful completion. In this piece, I look at some of the key factors in determining how things will play out and give my take on whether Red Hat will be bought or land back on the discount rack.

Red Hat/IBM: Does This Red Hat Go with My Big Blue Outfit?