RED HAT INC
SC 13G, 2000-02-14
COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  SCHEDULE 13G

                    UNDER THE SECURITIES EXCHANGE ACT OF 1934
                                        *

                                  RED HAT, INC.
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                         COMMON STOCK, $.0001 PAR VALUE
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                   756577 10 2
- --------------------------------------------------------------------------------
                                 (CUSIP Number)

                                DECEMBER 31, 1999
- --------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)

         Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:

            / /     Rule 13d-1(b)
            / /     Rule 13d-1(c)
            /x/     Rule 13d-1(d)

         *The remainder of this cover page shall be filled out for a reporting
         person's initial filing on this form with respect to the subject class
         of securities, and for any subsequent amendment containing information
         which would alter the disclosures provided in a prior cover page.

         The information required in the remainder of this cover page shall not
         be deemed to be "filed" for the purpose of Section 18 of the Securities
         Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
         that section of the Act but shall be subject to all other provisions of
         the Act (however, see the Notes).


                               Page 1 of 5 Pages
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CUSIP NO.      756577 10 2             13G                     PAGE 2 OF 5 PAGES

- --------------------------------------------------------------------------------
  1     NAME OF REPORTING PERSON
        I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                 1998 Frank Batten, Jr. Grantor Annuity Trust

- --------------------------------------------------------------------------------
  2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

                                                                 (a)/ /
                                                                 (b)/ /

- --------------------------------------------------------------------------------
  3     SEC USE ONLY


- --------------------------------------------------------------------------------
  4     CITIZENSHIP OR PLACE OF ORGANIZATION

                 U.S.A.

- --------------------------------------------------------------------------------

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

                    ------------------------------------------------------------
                    5    SOLE VOTING POWER

                               26,973,284 shares

                    ------------------------------------------------------------
                    6    SHARED VOTING POWER

                               0 shares

                    ------------------------------------------------------------
                    7    SOLE DISPOSITIVE POWER

                               26,973,284 shares

                    ------------------------------------------------------------
                    8    SHARED DISPOSITIVE POWER

                               0 shares

- --------------------------------------------------------------------------------
9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                 26,973,284 shares

- --------------------------------------------------------------------------------
10      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
                                                                    / /

- --------------------------------------------------------------------------------
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

                 18.1%

- --------------------------------------------------------------------------------
12   TYPE OF REPORTING PERSON *

                 OO

- --------------------------------------------------------------------------------
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


                               Page 2 of 5 Pages
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                                  SCHEDULE 13G

Item 1(a).        NAME OF ISSUER:  Red Hat, Inc.

Item 1(b).        ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:  2600
                  Meridian Parkway, Durham, NC  27713.

Item 2(a).        NAME OF PERSON FILING:  1998 Frank Batten, Jr. Grantor Annuity
                  Trust.

Item 2(b).        ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
                  The address of the principal business office of the 1998
                  Frank Batten, Jr. Grantor Annuity Trust is c/o Frank Batten,
                  Jr., Landmark Communications, 150 W. Brambleton Avenue,
                  Norfolk, VA  23510-2075.

Item 2(c).        CITIZENSHIP:  United States.

Item 2(d).        TITLE OF CLASS OF SECURITIES:  Common Stock, $.0001 Par Value.

Item 2(e).        CUSIP NUMBER:  756577 10 2

Item 3.           IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(B), OR
                  13D-2(B), CHECK WHETHER THE PERSON FILING IS A:

                  Not Applicable.

Item 4.           OWNERSHIP.

                  (a)      Amount Beneficially Owned:     26,973,284 shares

                  (b)      Percent of Class:      18.1%

                           The foregoing percentage is calculated based on the
                           148,933,572 shares of Common Stock reported to be
                           outstanding as of December 31, 1999 in a Form S-1
                           filed January 14, 2000.

                  (c)      Number of shares as to which such person has:

                           (i)      sole power to vote or to direct the vote:
                                    26,973,284

                           (ii)     shared power to vote or to direct the vote:
                                    0

                           (iii)    sole power to dispose or direct the
                                    disposition of: 26,973,284

                           (iv)     shared power to dispose or direct the
                                    disposition of: 0


                               Page 3 of 5 Pages
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Item 5.           OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.

                  Not Applicable.

Item 6.           OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER
                  PERSON.

                  Not Applicable.

Item 7.           IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
                  ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
                  COMPANY.

                  Not Applicable.

Item 8.           IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.

                  Not Applicable.

Item 9.           NOTICE OF DISSOLUTION OF GROUP.

                  Not Applicable.

Item 10.          CERTIFICATION.

                  Not Applicable.  This statement on Schedule 13G is not filed
                  pursuant to Rule 13d-1(b).


                               Page 4 of 5 Pages
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                                   SIGNATURES

      After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated:  February 11, 2000

                                            1998 FRANK BATTEN, JR.
                                            GRANTOR ANNUITY TRUST

                                            /S/ GUY R. FRIDDELL III
                                            ------------------------------------
                                            Guy R. Friddell III, Trustee


                               Page 5 of 5 Pages


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