2.4 The Early Days of Red Hat

In 1993 Bob Young created a company named ACC Corporation which, according to Young, he ran from his “wife’s sewing closet”. The name ACC was intended to represent a catalog business but was also an abbreviation of a small business his wife ran called “Antiques and Collectibles of Connecticut”. Among the items sold through the ACC catalog business were Linux CDs and related open source software.

Around the same time, Marc Ewing had created his own Linux distribution company which he named Red Hat Linux (after his propensity to wear a red baseball cap while at Carnegie Mellon University).

In 1995, ACC acquired Red Hat, adopted the name Red Hat, Inc. and experienced rapid and significant growth. Bob Young stepped down as CEO shortly after the company went public in August of 1999 and has since pursued a number of business and philanthropic efforts including a print-on-demand book publishing company named Lulu and ownership of two Canadian professional sports teams. In 2018, IBM announced plans to acquire Red Hat, Inc. in a deal valued at $34 billion.