Language Selection

English French German Italian Portuguese Spanish

Dell sinks $100M into Red Hat

Filed under
Linux

Dell invested his own money in the Raleigh Linux software developer, taking the largest single chunk of $600 million in debentures offered by the company in January 2004.

The investment was made by investment firm MSD Capital LP, which deploys an estimated $10 billion of Dell's personal wealth in public companies, private investments and real estate. The investment firm was given Dell's initials - MSD - as its name.

"It is certainly a good endorsement for Red Hat," says Katherine Egbert, an analyst with research firm Jefferies & Co. "Question (for Red Hat) is, did (Michael Dell) himself write a check, or is there a third party that wrote a check," says Egbert, referring to the possibility that investment managers - and not Dell - identified Red Hat for purchase.

Todd Fogarty, a spokesman for MSD Capital, declined to discuss the Red Hat investment but pointed out that 70 employees work for the New York investment firm. "It is our policy not to talk about investments," Fogarty says. A Red Hat spokeswoman did not return phone calls seeking comment.

Egbert notes that Dell Inc., which is based in Round Rock, Texas, resells Linux software on its servers and was an early investor in Red Hat.

The analyst does not see the purchase as a signal that Dell - neither the person nor the company - is interested in acquiring Red Hat. "Dell has never bought a software company," says Egbert. Neither Egbert nor her family own Red Hat shares, and Jefferies & Co. does not have an investment banking relationship with Red Hat.

Dell, a college dropout who is now 40, built a giant computer business by assembling computers and selling them directly to customers. His personal worth is estimated at about $16 billion by Forbes magazine.

Full Story.

More in Tux Machines

Linux Foundation and Linux

openSUSE Tumbleweed Users Get Git 2.11, Xfce 4.12.3, FFmpeg 3.2.1 & Mesa 13.0.2

openSUSE's Douglas DeMaio reports on the latest Open Source and GNU/Linux technologies that landed in the repositories of the openSUSE Tumbleweed rolling operating system. Read more

What Is A VPN Connection? Why To Use VPN?

We all have heard about VPN sometime. Most of us normal users of internet use it. To bypass the region based restrictions of services like Netflix or Youtube ( Yes, youtube has geo- restrictions too). In fact, VPN is actually mostly used for this purpose only. ​ Read
more

The Libreboot C201 from Minifree is really really really ridiculously open source

Open source laptops – ones not running any commercial software whatsoever – have been the holy grail for free software fans for years. Now, with the introduction of libreboot, a truly open source boot firmware, the dream is close to fruition. The $730 laptop is a bog standard piece of hardware but it contains only open source software. The OS, Debian, is completely open source and to avoid closed software the company has added an Atheros Wi-Fi dongle with open source drivers rather than use the built-in Wi-Fi chip. Read more