Dell to buy EMC for a huge $67 billion [u3: Who's next?]

Will Michael bring back Slacker Steve?
Or is Benjamin too busy with his Adult Swim gig?

Dell EMC merger

Michael Dell found some cash behind the couch cushions. So he's getting EMC. Gulp.

The transaction was announced today. And it's a biggie—the second-biggest tech merger ever.

Easy as Dell. That's what they used to say. But deals like this are never straightforward, especially for the employees who lose their jobs.

In IT Blogwatch, bloggers try to grok the sums involved. Not to mention: Benjamin in happier times...

Your humble blogwatcher curated these bloggy bits for your entertainment.
[Developing story: Updated 4:20 am, 6:51 am, and 12:38 pm PT with confirmation and clarification of deal size]

Three feet high Michael de la Merced's got rising soul:

Two years ago, Michael S. Dell succeeded in taking the company that bears his name private. ... Now Dell is poised to strike the biggest-ever takeover in the technology industry. ... Dell and its financial backer...Silver Lake are betting that a huge acquisition will help one of the best-known names in the industry keep up with the times.

Dell will pay the equivalent of $33.15 a share in a complicated transaction [and] would acquire a huge amount of debt. But that money would be borrowed before an expected rise in interest rates. ... The bulk of the company’s value is now in its 81 percent stake in VMware [worth] about $27 billion.

Dell is offering EMC shareholders both about $24.05 a share a share in cash and $9.10 worth of a so-called tracking stock for VMware.  MORE

Barb Darrow and Dan Primack are fortunate:

It seems to be happening. ... EMC is planning to announce at 7 a.m...that it has agreed to be acquired...according to multiple sources.

Neither EMC nor Dell has returned requests for comment.  MORE

"It'll be hard to see the carpet for the pink slips."—so Simon Sharwood says:

We're far from convinced that Dell acquiring and/or merging with EMC is a good idea. ... How much overlap Dell is willing to endure?

EMC and Dell's storage arrays overlap in many, many markets. ... Servicing US$20bn ore more of new debt...will make it hard for Dell to hang on to all the people. ... That EMC's range is a superset of Dell's should clinch the deal and ensure the Evil Machine Company leaves a legacy.

Documentum? For Sale. ... On servers, the entanglements are myriad. ... EMC's VSPEX range competes with Dell's converged server products. ... It could even be that VMware is set on a path to independence.

[It would] leave NetApp as the only pure-play storage vendor of note. ... Standing alone might not be the worst place for NetApp to find itself.  MORE

I spy, with my little eye, something bylined with Nick Farrell:

The largest tech deal of all time has been conducted without some of Dell’s top managers knowing. ... In fact a lot [are] out of the country.

EMC will be allowed to seek...offers from other companies. But that is just to stop the company being sued by shareholders. The only people likely to counter...are not interested.

It is not clear if the deal has been approved by Elliott Management...EMC’s seventh-largest shareholder. Elliott wanted EMC to spin off its stake in VMware.  MORE

Meanwhile, does Startup L. Jackson look like a female dog?

[You're fired -Ed.]

It's not even clear Michael Dell knows what year it is, who gave him this kinda credit limit?

Where is the synergy to be leveraged?  MORE

Update 1: It's official, say the aforementioned fortunate ones:

Dell Inc. this morning formally announced that it has agreed to acquire...EMC.

EMC chairman and CEO Joe Tucci would remain in that position until the deal closes, after which Michael Dell would become chairman and CEO.

It would be the second-largest tech merger ever, behind...the $106 billion tie-up between AOL and Time Warner in 2000.  MORE

Update 2: Antoine Gara quotes some quotable quotes:

When including debt, the takeover is expected to reach $67 billion.

Michael Dell is seeking to create a integrated IT giant that can compete directly with IBM and Hewlett-Packard. ... Mr. Dell said in a statement...“Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT.”

EMC chairman and CEO Joe Tucci...said, “I’m tremendously proud of everything we’ve built at EMC. ... But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era.”  MORE

Update 3: So who's next? Here's Lee Jackson, without a hint of irony:

It always happens. The minute a mega-deal like [this] hits the tape, the media radar goes up...looking for the next A new research report from Oppenheimer discusses what they call the “ripple effect.”

Cisco...may have to make a play as a result. ... They feel the networking giant could get forced in. ...
The Oppenheimer team thinks that the more that VMware is controlled by the Dell/EMC tech giant, the more opportunities that could be available for Citrix to partner with other storage vendors. ...
NetApp...and HP Enterprise, the soon-to-be spun off segment from Hewlett-Packard...could both benefit as, during the giant integration...they may not only lose corporate focus they could potentially lose engineering talent.

The big winners in the deal could very well be the emerging storage vendors, and the Oppenheimer team cites Nimble Storage...and a brand new initial public offering, Pure solid candidates. MORE

And Finally...
Benjamin in happier times

Click here for more "dude" videos.

You have been reading IT Blogwatch by Richi Jennings, who curates the best bloggy bits, finest forums, and weirdest websites… so you don't have to. Catch the key commentary from around the Web every morning. Hatemail may be directed to @RiCHi or  Opinions expressed may not represent those of Computerworld. Ask your doctor before reading. Your mileage may vary. E&OE.

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