iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,417 Blog Posts

Dell and EMC Rumored to Merge

This would be one of the biggest mergers in tech history, upwards of $50 billion. Granted, it would be a merger of two losers, whose dominance in their respective markets have waned considerably in recent years. Nevertheless, it points to a much more important dynamic that is often forgotten about in this market: cash.

EMC has a market capitalization of $50 billion, meaning that any such deal could rank as one of the largest tech-industry mergers. Chip maker Avago Technologies Ltd.’s pending $37 billion agreement to buy Broadcom Corp. is the largest pure-tech takeover ever struck. There has been a raft of tech and other takeovers this year, and merger volume overall is running at a near-record pace. Still, market volatility could slow down the overall merger market and pose a threat to the EMC-Dell talks, one of the people cautioned.

There is a fuckload of cash on the sidelines waiting to buy back stock and to be put to use for mergers.

It’s also worthing noting that there is upwards of $2 trillion of US corporate cash parked overseas, due to our inane taxation laws. Should some sort of tax holiday get passed by our incompetent government, I suspect that would do wonders for market sentiment.

EMC is up 7.8% on the news.

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8 comments

  1. frog

    Fly, it turns out none of this merger stuff matters. Because it turns out that the End of the World is toda, LOL..

    Too late now for Sloop to buy a bunker.

    http://news.yahoo.com/bible-believing-groups-proclaim-end-130000595.html;_ylt=AwrTcdsXqxVWQi0ArdsnnIlQ;_ylu=X3oDMTEyMnFrODMyBGNvbG8DZ3ExBHBvcwM0BHZ0aWQDQjA5NzVfMQRzZWMDc3I-

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  2. Dr. Fly

    Lol

    Sorry sloop, the world has ended.

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  3. gappingandyapping
    gappingandyapping

    These would be Le Fucked for VMW

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    • The Equalizer

      This. I remember the day DELL fucked up and published earnings while market was still open. Found about it in the PPT, now Exodus. Can’t find the notes because DELL ended up going private via Mikey and Silver Lake for $25B and stock delisted in 2013 but whatever.

      The idea of EMC buying privately-held-DELL gives the private shareholders an exit with a 100% return over 2-3 years, and helps EMC stave off VMC. Clever idea. From the perspective of Dell’s current shareholders (obvious), and EMC’s manglement (not quite as obvious but maybe they value their jobs more than their shareholders’ net worth), who the hell cares if it works?

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  4. zephler

    How does this affect VMW?

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  5. ironbird

    This type of “value” destruction is also the fuckery that happens at every top. The old screw the sister it is easier trick.

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  6. it is showtime

    Is this good for the Jews?

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