Conversation

@superruserr @saper There are other reasons for a merger like this as well. IBM can now fold in all of Red Hat's offerings with their own (economies of scope), and can more easily sell stuff to Red Hat's existing customers, and vice versa. In this way, the acquisition is a method of increasing sales and revenues between the two firms *and* collect *all* the profits from both of them.

Another benefit is vertical integration where Red Hat solutions are a part of IBM's offerings.