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This is why my new job at VMware is on hold. I won't know until next week, at the earliest, if the job still exists. I've got my fingers crossed. Dell said VMware will remain independent. That sounds promising but we shall see....
Click the link for the rest if you have nothing better to do... it's loooooong.
Dell is buying EMC, a $50 billion publicly traded IT giant, for around $67 billion in one of the tech industry's biggest mergers ever, according to Bloomberg, which said the terms of the deal looked like this:
Here is the official release from Dell (or you can scroll down for the full text).
News of the deal first leaked last week. It's not just big — it's actually twice as big as the previous largest tech-only deal, the Compaq-HP deal, valued at $33.4 billion. (The Time Warner-AOL deal was larger, but TW wasn't regarded as a tech company at the time.)
A complicated merger
The merger will be complex and costly to execute, given the sheer size and scope of both companies. But the payoff could mean that Dell gets a broader enterprise business, while EMC gets some breathing room after its recent troubles.
Dell, EMC, and VMware — which specializes in a technology called virtualization that helps companies make their data centers more efficient — have all been facing pressure from cloud services such as Amazon Web Services, which lets customers outsource their data-crunching and data-storage needs to one of the e-retail giant's hugely efficient data centers.
In addition, Dell has reportedly been hit hard by the sagging PC market, threatening its PC-manufacturing business.
For its part, EMC has fallen on some hard times. Free software like Hadoop, which can be run on commodity servers, has seriously affected EMC's storage and data-processing businesses, as it removes the need for customers to buy often-pricey software and hardware products.
EMC reportedly began a strategic review to explore various options last year. And over the summer, EMC vowed to cut $850 million in expenses, prompting employees to start bracing themselves for mass layoffs.
Plus, longtime EMC CEO Joe Tucci was slated to retire in February 2015, but that didn't happen. He has made no secret of the fact that he's searching for his replacement. With the merger, that problem goes away.
The full text of the official statement:
Michael S. Dell, MSD Partners and Silver Lake Lead Transaction to Combine Dell and EMC, Creating Premier End-to-End Technology Company
Dell plans to pay $24.05 a share in cash plus tracking stock in EMC’s prize holding, VMware Inc., valued at about $9 for each EMC share, the companies said in a statement Monday. The price of $33.15 a share is 28 percent above EMC's closing level on Oct. 7, just before reports surfaced that a deal was in the works.
News of the deal first leaked last week. It's not just big — it's actually twice as big as the previous largest tech-only deal, the Compaq-HP deal, valued at $33.4 billion. (The Time Warner-AOL deal was larger, but TW wasn't regarded as a tech company at the time.)
A complicated merger
The merger will be complex and costly to execute, given the sheer size and scope of both companies. But the payoff could mean that Dell gets a broader enterprise business, while EMC gets some breathing room after its recent troubles.
Dell, EMC, and VMware — which specializes in a technology called virtualization that helps companies make their data centers more efficient — have all been facing pressure from cloud services such as Amazon Web Services, which lets customers outsource their data-crunching and data-storage needs to one of the e-retail giant's hugely efficient data centers.
In addition, Dell has reportedly been hit hard by the sagging PC market, threatening its PC-manufacturing business.
For its part, EMC has fallen on some hard times. Free software like Hadoop, which can be run on commodity servers, has seriously affected EMC's storage and data-processing businesses, as it removes the need for customers to buy often-pricey software and hardware products.
EMC reportedly began a strategic review to explore various options last year. And over the summer, EMC vowed to cut $850 million in expenses, prompting employees to start bracing themselves for mass layoffs.
Plus, longtime EMC CEO Joe Tucci was slated to retire in February 2015, but that didn't happen. He has made no secret of the fact that he's searching for his replacement. With the merger, that problem goes away.
The full text of the official statement:
Michael S. Dell, MSD Partners and Silver Lake Lead Transaction to Combine Dell and EMC, Creating Premier End-to-End Technology Company
Date : 10/12/2015
Brings together the industry’s leading innovators in digital transformation, software-defined data center, hybrid cloud, converged infrastructure, mobile and security
EMC stockholders to receive approximately $33.15 per share (based on the assumptions described below) in a combination of cash as well as tracking stock linked to a portion of EMC’s economic interest in the VMware business
VMware to remain an independent, publicly-traded company
Brings together the industry’s leading innovators in digital transformation, software-defined data center, hybrid cloud, converged infrastructure, mobile and security
EMC stockholders to receive approximately $33.15 per share (based on the assumptions described below) in a combination of cash as well as tracking stock linked to a portion of EMC’s economic interest in the VMware business
VMware to remain an independent, publicly-traded company
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