for $200-$300M, they are probably paying 10x revenue. ScaleIO raised $12M in round A in Dec 2012.
I bought FIO after-hours on this news. I think M&A activity in storage sector will be a catalyst to spur some short covering in FIO. Dell and NTAP have to counter big. Either of them could take out FIO at $25+
I could certainly be wrong timing wise, but here is what I have learnt:
- FB building 3 new data centers in Iowa, launching Video Service, may finally start in China
- AAPL launching music service, adding to data center buildout
- Data Center buildouts are not slowing, pace actually increasing. See FNSR report from yesterday
- EMC making defensive moves, they have made a lot of noise and not delivered
- Flynn may have been pushed out because a major customer account was unhappy. Btw, I am quite satisfied when founder CEO move on at the right time. See CSCO, VMW etc, By nature founders are not always good fit as CEO.