Will Oracle buy Red Hat?

Linux vendor Red Hat Inc saw over $1bn wiped from its market capitalization in early trading after Oracle Corp announced that it was going to offer a Red Hat Enterprise Linux clone, leaving the company open to a potential takeover bid.

Red Hat's shares closed at $19.51 before Oracle's chief executive officer, Larry Ellison, announced that Oracle would offer Linux support at half the price of Red Hat. They opened Thursday at $15.75, having slumped 19.2% in after hours trading.

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