Wny? I think the key reason is that as a standalone company, the new VMW would be able to pursue whatever path it chose to maximize return to shareholders. That might include a subsequent spinoff or sale of the EMC biz. Of course, if EMC bought VMW out, the new EMC could do that as well.
I have to admit this is completely unexpected and from what little I've read, downstream mergers are very rare. If I understand this all correctly, EMC shareholders will receive a stake in the new VMW and some cash. The question is what premium, if any, will VMW pay to EMC shareholders for the benefit of being its own master. It better be small to nothing, given the fact that EMC is a low-no growth biz, otherwise I vote NO to this deal.
yes i think so cause it was still trading at 4:15pm est, I wonder why it cratered at the close, shouldn't an increase in stake be a good thing?
I think I found the answer. EMC will be the buyer.
@@Elliott Management is pressuring EMC to spin off its stake in VMware; but EMC chief executive Joe Tucci may do just the opposite. Talk about contrarian. For months EMC EMC chief executive Joe Tucci has resisted pressure from Elliott Management to sell EMC’s majority stake in VMware VMW . Now, with a stand-still agreement between EMC and Elliott set to expire next month, EMC is reportedly eying a slightly different plan of action: It may just buy up the part of VMware it does not already own, according to Re/Code.
IBM should buy VMW.. They need the growth based on their lousy report..
Everyone and there sister's uncle knows the cloud is the future, and VMW is about solidify once and for all as the Google of Cloud! Elliot with more controll on the board will push for a decisive split that will happen in next 4 months IMHO. The real benefit for EMC is to reinvent itself with new tech discoveries through innovation that is cutting edge. I understand their research and development teams have it, now complete the split, enjoy the windfall, and psuh technology into the next generation of discovery! It happens lightening quick and the time to ceize the moment is RIGHT now!! They can be proud of their child VMWare now breed a new one whil perfecting their core business. The cash will be enough to start 20 businesses and permit massive buy backs and incentivize the life blood innovators of their company!! Just do it as Nike once said!! ;)