Dell In Talks to Acquire EMC
- 9 years ago
PC hardware maker Dell, Inc. and EMC Corp. may be headed for a merger valued at upwards of $50 billion.
According to reports from Reuters and The Wall Street Journal, Dell has entered talks with banks to finance an all-cash offer for EMC, the storage software giant that also owns 80 percent of cloud virtualization provider VMware, Inc.
The reports state a deal could be reached within the week, and the terms may constitute Dell spinning off VMware into a separate entity.
Hedge fund Elliott Management Corp. took a two percent stake in EMC last year and had been pressuring the company to boost its falling stock prices.
"While we believe EMC and Dell merging would change the tech landscape as the combined tech giant would aggressively go after the next generation storage and datacenter landscape in this land grab opportunity, ultimately, we have doubts that a complex deal with such high integration risks would end smoothly," said Ives.
According to reports from Reuters and The Wall Street Journal, Dell has entered talks with banks to finance an all-cash offer for EMC, the storage software giant that also owns 80 percent of cloud virtualization provider VMware, Inc.
The reports state a deal could be reached within the week, and the terms may constitute Dell spinning off VMware into a separate entity.
Hedge fund Elliott Management Corp. took a two percent stake in EMC last year and had been pressuring the company to boost its falling stock prices.
"While we believe EMC and Dell merging would change the tech landscape as the combined tech giant would aggressively go after the next generation storage and datacenter landscape in this land grab opportunity, ultimately, we have doubts that a complex deal with such high integration risks would end smoothly," said Ives.