FTC probes IBM's $6.4B HashiCorp takeover
The FTC is investigating IBM's acquisition of HashiCorp for $6.4 billion. The probe may involve HashiCorp's Terraform software. Market reacted negatively, leading to stock price dip. Outcome pending.
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The Federal Trade Commission (FTC) is investigating IBM's $6.4 billion acquisition of HashiCorp, as disclosed in a filing to the SEC by HashiCorp. Both companies received a request for additional information from the FTC regarding the merger. HashiCorp aims to finalize the acquisition by the end of the year. The probe may be related to HashiCorp's Terraform software, a popular configuration management tool for business cloud customers. Despite Terraform's success, the transition from open source to business source has faced challenges, leading to the emergence of alternative versions like OpenTofu. The market initially reacted negatively to IBM's acquisition announcement, causing a dip in stock price. The FTC's investigation follows a lawsuit by a HashiCorp shareholder, alleging the acquisition was designed to benefit the software firm's board members. IBM and HashiCorp have not provided additional comments beyond the SEC filing. The outcome of the FTC's investigation remains pending.
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