Interesting Articles on Dell purchase of EMC2 Data Storage and...

Interesting Articles on Dell purchase of EMC² Data Storage and Management

Dell to buy EMC in deal worth about $67 billion

http://www.cnbc.com/2015/10/12/dell-to-buy-emc-in-deal-worth-about-65-billion.html

EMC stockholders will receive about $33.15 per share in cash and a type of stock that is linked to "a portion of EMC's economic interest" in its VMware business, which will remain an independent, publicly traded company, the companies said in a statement Monday.

Dell makes $67bn bet on EMC in tech history's largest acquisition

Largest-ever tech deal helps world’s third-largest computer maker to tap into faster-growing market for managing and storing data

http://www.theguardian.com/business/2015/oct/12/dell-to-buy-emc-in-67bn-dollars-deal

Abstract…..

American computer company Dell is buying digital storage giant EMC for $67bn in the largest tech acquisition in history and a move that marks another transformation for the once pre-eminent maker of consumer PCs.

Shares of EMC surged on news of the deal.

Dell, by contrast, is not publicly traded. Founder and CEO Michael Dell took the company private at a price of $25bn in 2013 largely to escape the clutches of investors who wanted to oust him (notable among them activist investor Carl Icahn).

EMC, a company with a large legacy business in packaging, selling and making software for computer storage systems.

It’s a core business that has been in decline as more companies move to cloud storage, and while EMC has invested in similar products related to the cloud, they have not managed to offset the declines in the company’s main business.

Glenn O’Donnell, vice-president research director for market analysts Forrester Research, said the move made long-term financial sense, though how it would be paid for in the short term was a larger question.

“They’ll be getting an absolutely enormous cash flow stream with EMC,” said O’Donnell.

“The core cash flow stream is declining but it’s still huge. That’s a really bad thing for a publicly traded company, but it’s a darn good thing for a private one.”

EMC owns a number of other assets, among them RSA, the pioneering security firm with close links to the National Security Agency.

It also owns a majority stake in VMware, a widely used “virtualization” cloud computing company that is has its own tracking stock (EMC sold 15% of VMware as an IPO in 2007) and a market cap of some $33bn by itself.

O’Donnell said that while VMware is the crown jewel in the acquisition, it might have to go. “They have to drum up some cash,” he said. “The investors are ponying up some money. I have to believe part of the plan is to spin off VMware, because that will net them a ton of money.”

“EMC’s board and I have worked tirelessly over the last few years exploring a variety of options for EMC, and I truly believe this is the best way forward for us,” said Joe Tucci, chairman and CEO of EMC. The combined company, he told investors on a conference call on Monday, would have hubs in Boston, Massachusetts; Austin, Texas; and the San Francisco Bay area.

EMC² as seen by Wikipedia

https://en.wikipedia.org/wiki/EMC_Corporation

	Column 1	Column 2
0	Type	Public
1	Traded as	NYSE: EMC S&P 500 Component
2	Industry	Computer storage
3	Founded	1979; 36 years ago
4	Founder	Richard Egan Roger Marino
5	Headquarters	Hopkinton, Massachusetts, United States
6	Area served	Worldwide
7	Key people	Joseph M. Tucci (Chairman, President and CEO)
8	Products	See EMC products
9	Revenue	US$24.440 billion (2014)[1]
10	Operating income	US$4.037 billion (2014)[1]
11	Net income	US$2.714 billion (2014)[1]
12	Total assets	US$45.885 billion (2014)[2]
13	Total equity	US$23.525 billion (2014)[2]
14	Number of employees	70,000 (2014)[1]
15	Subsidiaries	VMware RSA Security LenovoEMC
16	Website	emc.com http://www.emc.com/en-gb/index.htm?fromGlobalSelector

https://uk.finance.yahoo.com/q/ks?s=EMC

	Column 1	Column 2
0	Share Statistics
1	Avg Vol (3 month)3:	17,849,200
2	Avg Vol (10 day)3:	28,141,800
3	Shares Outstanding5:	1.92b
4	Float:	1.92b
5	% Held by Insiders1:	0.20%
6	% Held by Institutions1:	83.10%
7	Shares Short (as of 30 Sep 2015)3:	21.51m
8	Short Ratio (as of 30 Sep 2015)3:	1.47
9	Short % of Float (as of 30 Sep 2015)3:	1.09%
10	Shares Short (prior month)3:	24.12m

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