Dell seeking $40bn to buy EMC next week say reports Dell is figuring out how to borrow the US$40 billion it would need to acquire EMC, according to reports quoting the usual folks familiar with the deal. CNBC says Dell is prepared to offer $27 a share to buy EMC. It'll need to because EMC shares closed today at $27.18, up $1.22. Bloomberg's take on the deal also uses the $40 …
Interesting as EMC will piss off Cisco majorly. And Dell will piss off many of their partnerships like nutanix and the like. Then there is the whole overlap of storage portfolios, where one is much stronger than the other. All of Dell's non-integrated acquisitions, the competing backup products, competing security, cloud, etc... I see no good to come from this at all.
Why in the F*ing world do shareholders have to come first? Why can't it be the customers and technology?
Why in the F*ing world do shareholders have to come first? Why can't it be the customers and technology?
Because Elliot Management and the rest of the vultures (sorry El Reg, no slam at you) cry, toss hissy fits and lawsuits about. That's probably one reason the stock suddenly went up is that Elliot has a lackey (or two.. I think) on the board which might be interesting if the SEC has a look at why the stock was suddenly jumping.
"Interesting as EMC will piss off Cisco majorly. "
EMC and Cisco have had a very rocky relationship as of late. This acquisition/merger would be the final blow to a once-promising partnership. IMHO Dell makes a better partner than HP having a lot fewer overlapping product lines.
Actually this could work well. Sure Nutanix will get annoyed along with Solidfire but Dell could do well. It would take a lot of streamlining the products to keep only what is needed in storage and backup. Downsize the EMC part and float Pivitol and some more of VMware. Some of the write-offs could even give tax credits combined with some of the floats to cover some cost.
The Irony of the partnership that fell apart post Compellent.....
Dell's big sell would be that it becomes the largest full IT stack from hardware to software to management. Not sure how well the Microsoft partnership will fare and that might drive them and HP(E) together. I do wonder if they could cope with such a large pill.
The original buy of vmWare by EMC was a masterstroke. vmWare got the backing of a tech company with deep pockets while EMC as a storage (critically not a server) vendor didnt compromise vmWare's server-agnostic reputation. In time vmWare came to own the x86 space in the DataCenter. Would a buyout by DELL harm that position? Probably not these days - so long as DELL don't abuse their position and keep vmWare as an independant subsidiary.
Assuming this is true, and that is a big if, Dell have a crap track record with bringing storage companies under the Dell umbrella.
Compellent, Equalogic, who was it they sold to LSI to make DAS's?
I mean the track record sucks, and as for innovation - opposed to "reformulation" they are not much better. "If" they merge with EMC then the IT world will be poorer because of it. Personally though I think this will not happen, Dell has to show good on its return to being private, I am not sure that has happened to justify a risk to the tune of $40 Billion.
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