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Dell To Buy EMC For $67 Billion (nytimes.com)

Posted by Soulskill on from the go-big-or-go-home dept.

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.

5 of 116 comments (clear)

  1. Your mortgage got you stressed? by willworkforbeer · · Score: 4, Interesting

    Imagine the pressure of waking up every day with a US$60Billion debt over your head. No pressure, sales weasels, no pressure at all.

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    Pretending this is my office full of bitter coworkers..
    1. Re:Your mortgage got you stressed? by jellomizer · · Score: 2, Interesting

      Tech companies don't get the political love. Those are run by Geeks and Nerds (terms used in a derogatory form) those guys who the politicians would make fun of and insult as a kid. Unlike the auto industry who is filled with Hard Working Salt of the Earth workers, and creating a product that you can see and touch and buy to impress other people.

      Very Baby Boomer thinking. But that is the generation who is still in charge.
         

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      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    2. Re:Your mortgage got you stressed? by Drewdad · · Score: 3, Interesting

      Uh.... They H1B visa program would seem to refute this assertion.

  2. Post PC strategy by Anonymous Coward · · Score: 3, Interesting

    Even Dell has realized no one buys PCs anymore. They are really smart to diversify into services, where there's still some profit to be made.

  3. Will they corrupt VMware? by swb · · Score: 5, Interesting

    My worry about this is that Dell will corrupt VMware with hardware-specific "features".

    One thing that's been kid of nice about VMware up to this point is that they have been fairly hardware agnostic, which I think improves the innovation of pure virtualization. My worry is that with Dell ownership, they will put pressure on VMware to develop features which give an advantage to Dell hardware solutions.

    Maybe it'd be ultimately beneficial to further SDN or SDS, which seem hobbled by a lack of standards at the hardware interface level but I doubt such integration would be oriented at vendor-neutral public standards and more oriented towards monopoly standards.