Dell is making a run at EMC (NYSE: EMC), looking to raise $50 billion from banks to make the buy. It’ll give Dell a presence in data storage, which is really a play to up its cloud based offering game.
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Michael Gelband’s Exodus Point launched in 2018 with $8.5 billion in assets. Expectations were high that the former Millennium Management executive would be able to take the skills he had learned at Izzy Englander’s hedge fund and replicate its performance, after a decade of running its fixed income business. The fund looks to be proving Read More
This will be the largest tech deal ever and a move that Dell needs. And something we talked about a few months ago. It’s still heavily entrenched in PCs even after being private for a couple years. The “storing data” for corporations is a much faster-growing market.
The likely buyout will be $30 a share and mean a $58 billion deal for EMC. It’ll be a large debt raise, but Silver Lake is an implicit backer and will likely fork up some money. The deal also means Dell gets that 80% stake in VMware.
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This solves Dell’s need to get deeper into virtualization and enterprise while taking the activist monkey off EMC’s back.
The big overhang is; will Hewlett Packard finally get in gear and return to EMC with an offer?