← Back to historical deals
Deal analysis

IBM Red Hat

IBM paid a large premium to accelerate hybrid cloud relevance and acquire a scarce enterprise open-source platform.

84OPI

Strategic overpay

Deal value

$34.0B

Announced

Oct. 28, 2018

Buyer type

Strategic

Consideration

Cash

Premium bridge
Predicted fair premium41%
Actual premium63%
Overpay delta+22%
Model confidence86%
Premium signal
OPI 84 / 100
Model readout

Why ImpliedAI flags this deal

The preview model gives credit for strategic urgency and asset quality but flags the premium as elevated relative to mature infrastructure software benchmarks.

Cloud repositioningOpen-source scarcityRevenue durabilityTransformation urgency
Comparable transactions

Broadcom / VMware

Selected precedent for strategic fit and premium context

Microsoft / GitHub

Selected precedent for strategic fit and premium context

VMware / Pivotal

Selected precedent for strategic fit and premium context

Research preview note: this page uses illustrative model outputs to demonstrate the product workflow. It is not investment advice and should not be treated as a final valuation opinion.