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Dell To Buy EMC For $67 Billion (nytimes.com)
im_thatoneguy writes: After days of rumors, the NY Times is reporting that Dell will in fact be acquiring storage company (and VMWare parent) EMC in a record $67B deal being financed by a consortium of banks. Dell has confirmed the deal on their website.
Under the deal, Dell will pay $33.15 a share, which represents a premium even on top of EMC's current value, which had already jumped on initials rumors of a $50B acquisition last week. However, insiders say the deal won't be a straight forward cash buy-out of stock holders. Instead, EMC investors will receive about 70% in cash and the remainder in what's called a Tracking Stock, which will track the performance of just the VMWare Division within the new organization.
Under the deal, Dell will pay $33.15 a share, which represents a premium even on top of EMC's current value, which had already jumped on initials rumors of a $50B acquisition last week. However, insiders say the deal won't be a straight forward cash buy-out of stock holders. Instead, EMC investors will receive about 70% in cash and the remainder in what's called a Tracking Stock, which will track the performance of just the VMWare Division within the new organization.
The auto industry paid most of the money back. Depending upon accounting rules, the U.S. lost approx. $9.8 billion to $16 billion. However, this does not count the dent in the U.S. economy and ultimately the tax receipts of NOT bailing out the auto industry (actually, just GM and Chrysler). That dent would have been very large and many people thrown out of work, not least the supply chain for that industry. There is a similar story with the banks paying their wad back.
Whether you like it or not, a government is a giant insurance policy. We use it to protect the people from getting whacked, something the whiners about the ACA conveniently forget (would that we were all rich and employed). One can argue the banks and Wall Street are too big, and I'd heartily support breaking the former up and reducing the influence of the latter or at least taxing those leeches a lot more.