Red Hat Inc Stock: A Complete History of RHT
Red Hat Inc stock (formerly NYSE: RHT) represented one of the most significant success stories in the history of open-source software and the broader technology sector. As the world's leading provider of enterprise Linux solutions, Red Hat proved that a business model based on free software could generate massive shareholder value. However, following a historic acquisition by IBM, RHT was delisted from the New York Stock Exchange in July 2019.
Red Hat, Inc. (Former NYSE: RHT)
Red Hat, Inc. was an American multinational software company that provided open-source software products to enterprises. Founded in 1993, it became synonymous with the Linux operating system, specifically Red Hat Enterprise Linux (RHEL). For investors, Red Hat Inc stock was the primary vehicle for gaining exposure to the growth of open-source technology and cloud infrastructure before the company was fully integrated into IBM's Cloud and Cognitive Software division.
Stock Market History
Initial Public Offering (IPO)
Red Hat made its debut on the public market on August 11, 1999. It is remembered as one of the most successful IPOs of the dot-com era. On its first day of trading, the stock price tripled, signaling massive investor appetite for Linux-based technologies. This event marked a turning point, proving that open-source software was a viable and profitable enterprise category.
Ticker Symbol and Exchange
The company traded under the ticker symbol RHT. While it initially listed on the NASDAQ, it later moved to the New York Stock Exchange (NYSE) in 2006. The move to the NYSE was seen as a sign of maturity, transitioning from a high-growth tech startup to an established blue-chip enterprise software provider.
Historical Performance
Over its two decades as a public entity, Red Hat Inc stock exhibited consistent growth. A notable event in its history was a 2-for-1 stock split in 2000. Throughout the 2010s, the stock transformed from a volatile tech play into a stable leader. According to historical data, the stock delivered substantial returns for long-term holders as the company expanded its portfolio into virtualization, storage, and cloud computing.
IBM Acquisition (2019)
Merger Announcement
In October 2018, IBM and Red Hat announced a definitive agreement under which IBM would acquire all issued and outstanding common shares of Red Hat. The deal was valued at approximately $34 billion, making it one of the largest software acquisitions in history at that time.
Acquisition Price and Terms
IBM agreed to pay $190.00 per share in cash for Red Hat Inc stock. This price represented a premium of approximately 63% over Red Hat’s closing price prior to the announcement. The all-cash deal was designed to accelerate IBM's high-value model and position the combined company as the leader in the hybrid cloud market.
Delisting
The acquisition was officially completed on July 9, 2019. Consequently, July 8, 2019, was the final trading day for RHT on the New York Stock Exchange. Following the closing, Red Hat became a subsidiary of IBM, and its stock was delisted. Former RHT shareholders received the agreed $190.00 per share.
Financial Fundamentals & Business Model
Open Source Subscription Model
The primary driver behind the value of Red Hat Inc stock was its unique subscription-based business model. While the software itself was open-source and free to download, Red Hat sold subscriptions for enterprise-grade support, security patches, and certified ecosystems. This created a predictable, recurring revenue stream that was highly attractive to institutional investors.
Key Revenue Segments
Red Hat’s revenue was split between two main categories: Infrastructure-related offerings, led by Red Hat Enterprise Linux (RHEL), and Application Development and emerging technologies, such as OpenShift and Ansible. The rapid growth of OpenShift, a containerization platform, was a key factor in IBM's decision to acquire the company.
Legacy and Investor Impact
Role in Cloud Computing
Red Hat's stock value became inextricably linked to the rise of hybrid cloud environments. By providing a consistent operating layer across physical, virtual, and cloud environments, Red Hat became the "Swiss Army Knife" of the modern data center, ensuring its relevance even as competitors shifted toward proprietary cloud stacks.
Integration into IBM
Since the merger, Red Hat has operated as a distinct unit within IBM. While individual investors can no longer buy Red Hat Inc stock directly, the performance of Red Hat continues to be a major highlight in IBM’s quarterly financial reports. Red Hat’s growth often outpaces IBM’s legacy business segments, validating the $34 billion purchase price.
Historical Data Reference
Prior to its delisting in 2019, Red Hat Inc stock maintained a 52-week range typically between $115 and $190. According to historical financial records, the company’s market capitalization at the time of the merger was approximately $33.68 billion. For those interested in current technology and infrastructure investments, exploring modern assets on platforms like Bitget can provide exposure to the next generation of tech innovation.
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