Dell Buys EMC for $67 Billion

Traders would be closely watching the release retail and inflation reports that would be released over the coming days which would provide an insight into the inherent strength of the U.S. economy. How much that matters is an open question.

Jamie Dimon, the chief executive of JPMorgan, played a role, along with tech investor Silver Lake, sovereign wealth fund Temasek, and Michael Dell himself. “The problem is, the future belongs to non-traditional players”, says Glenn O’Donnell, a research director at Forrester. “We would lower our rating on Dell if the company experiences acquisition integration challenges, leading to significantly weaker-than-expected revenue growth and profitability and adjusted leverage exceeding 4x”, S&P said in a statement. It also has an 80 percent stake in cloud-computing company VMware Inc., which will stay an independent, publicly traded company.

Dell will combine EMC and Michael Dell will lead the organisation under his guidance.

What happens to the VMware-Cisco-EMC partnership? “That said, Dell is basically going to own VMware and they can do whatever they want at this point”.

Dell rose to prominence as a seller of affordable personal computers, but are now shifting their focus to providing software and other services such as data storage and security which EMC specializes in. “The VCE effort is dead, in my opinion”, he said.

Assuming the deal goes forward, EMC’s federated structure could face a few tests over the next 18 to 24 months.

Oh, and somewhere between $US40 and $US50 billion in debt.

Del Prete sees a more pragmatic path from Dell.

The vendor has copped a beating in recent years with a continuous slump in global PC shipment sales and it knows it needs to diversify in order to remain relevant in the technology space.

What does the acquisition mean for rivals? The combined company really has a fantastic set of capabilities to help customers to do that. The combined enterprise systems business headquarters will be in Hopkinton, Mass., where EMC is based.

Dell went private for about Dollars 25 billion in 2013. 15 for their own stockpile, in deal including usd24. “A quick way for Dell to increase [its] market share is…”

EMC and Dell already have a deep relationship.

A few cuts are inevitable, but perhaps not as many as you’d think in a deal this size. The acquisition of EMC brings Dell one of the biggest names in computer data storage, adding to existing offerings like network servers, corporate software and mobile devices.

Dell was in better shape financially following its buyout and Michael Dell was looking for his next step, right when EMC was looking at making a change.