IBM only buying Red hat thinking that their technology innovation in cloud will save IBM and they will become number one player in Hybrid cloud market. but they don't understand 80% of companies are going with one cloud provider mostly AWS with almost 60% market share and rest of 20% of companies may opt for Hybrid cloud but now this year Aws launching Aws outpost (same Aws cloud technology running on premises),that Hybrid market will totally change with that Aws offering and hybrid cloud market shrink further from 20% to 10% or lower. IBM totally ignoring invovation threat from AWS and thinking bundling REd hat cloud offering with their offering will help to capture market share and more revenue but instead signing for debt spiral which will sink the whole IBM ship within 3-5 years because of losing further market share which in turn reduce revenue and finally whatever positive cash flow left in 3-5 years will be spend on either share buy back starting from 3rd year because of shareholder pressure of reduce share price or paying back bond /debt maturing beyond 5 years from now.This 34 billion purchase of Red hat is slow death for IBM in few years .And don't forget we are in longest bull run of 10 years plus and beyond 2020 if recession comes ,that will speed up death of IBM faster as revenue will go down faster. They are not saving anything for rainy days but instead spending everything and on top of that getting more money from market in form of bonds to k--l themself in few years.
Excellent point by @YXczRD3-1hor.