[linux-elitists] Red Hat borrows $500M
Wed Jan 7 01:36:51 PST 2004
Jonathan Corbet writes:
> Red Hat is issuing debentures for $500M, due in 20 years, at a 0.5%
> interest rate.
> They are convertible for stock at $25/share.
> Question: why would Red Hat, with $300M in cash and investments, borrow
> $500M more? If they're doing something involving that sort of cash, I'd
> sure like to know about it...
Seems to me they did it because its cheap money. Might need it to
fight SCO. The time to get it is when you don't need it.
"Speed, it seems to me, provides the one genuinely modern pleasure."
-- Aldous Huxley (1894 - 1963)
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