Dell And EMC Announce Dell On Columbus Day 2015

Posted: Oct 12 2015, 8:18am CDT | by , Updated: Oct 12 2015, 4:56pm CDT, in News | Latest Business News


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Dell and EMC announce Dell on Columbus Day 2015
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New report says that Dell and EMC will announce merger on Monday morning.

Today is Columbus Day 2015 in the United States. The controversial Federal Holiday is the most fragmented and many communities choose to celebrate Indigenous Peoples' Day instead. In any case the stock markets are open and traders are awaiting a big deal announcement in the tech space.


The $67 Billion Dell EMC Merger is official.

According to sources of Fortune, EMC will announce at 7am that the storage giant has agreed to be acquired by privately held Dell. The deal is supposed to result in a company that is worth about $75 billion.

Micheal Dell talked to the New York Times about the EMC deal: “We’re continuing to evolve the company into the most relevant areas where I.T. is moving,” Mr. Dell said in an interview. “This deal just accelerates that.”

The new NYT report estimates the value of the deal to be $65 billion; still the biggest deal in tech.

The deal is quite complicated and according to Reuters, has continued over the weekend with banks and board members. Reuters reports that EMC is insisting on a go-shop clause. This allows EMC to accept a better deal from other companies until the deal has closed. EMC could pay a breakup fee and accept a deal from another company. IBM, HP and Cisco are imaginable suitors for EMC.

The deal structure is also complicated. According to rumors, the value of EMC is set at about $33 per share. Dell would pay $25 in cash and, no, it gets complicated; the rest would be paid to EMC shareholders with a special stock that tracks the market value of VMWare Inc. EMC is the majority owner of virtualization company VMWare. On the other hand, it is not that surprising that the largest deal in the tech sector on record is complicated.

The announcement of EMC and Dell would bring an end to the ongoing rumors of Michael Dell's next big move.

His boldest move so far was to make Dell private again. Michael Dell said in 2013: "I believe this transaction will open an exciting new chapter for Dell, our customers and team members. We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise. Dell has made solid progress executing this strategy over the past four years, but we recognize that it will still take more time, investment and patience."

Well so far this plan is working out.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]




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