“Red Hat…sometimes is viewed as a business plan in search
of a company. That perception soon may change.“
“Red Hat’s proposed acquisition of Cygnus Solutions will add
much-needed bulk to a company that critics say has lacked real
substance. The Cygnus deal may be just an appetizer. With a market
valuation topping $7 million, Red Hat plans to continue consuming
other companies in hopes of growing into the 900-pound gorilla of
the Linux industry….”
“As a still-money-losing venture, Red Hat will dip into its well
of valuable stock to pay for the ten-year-old Sunnyvale,
California-based open-source software company. The Cygnus purchase
follows two smaller acquisitions by Red Hat, which earlier bought a
Linux services company and a Web development firm. Red Hat
executives say the company’s spending spree isn’t over. They plan
to use the company’s wealth to gobble up more open-source companies
in order to fill out its business model.”