![]() Reuters reported last week that EMC executives are considering revamping the Virtustream idea in hopes of shoring up investor support for the Dell merger. Shareholders reportedly have pushed back at the both the Virtustream plan and the larger Dell acquisitions. “We do not plan to do anything proprietary with VMware as regards Dell or EMC, nor place any limitations on VMware’s ability to partner with any other company,” he wrote. That also appears to have been a drag on VMware’s stock.Ī week after the EMC acquisition was proposed, Michael Dell wrote a post on the company blog saying that VMware will remain an independent company with a broad and varied ecosystem. In addition, EMC and VMware officials two weeks after the Dell deal was announced proposed creating a company that would be based on the cloud technology EMC inherited when it acquired Virtustream in May for $1.2 billion, and that EMC and VMware would jointly own, with each getting a 50 percent share. ![]() VMware reportedly has seen its share price drop by as much as 30 percent since the Dell deal was announced, while EMC’s has fallen by as much as 9 percent. ![]() However, the proposed deal has hurt the stock prices of both EMC and VMware, which has made investors in those companies nervous. Michael Dell has spoken highly of EMC’s unique federated business model, where such companies like VMware, RSA, VCE and Pivotal operate as independent companies that work together and at times compete with each other. It also would stand in sharp contrast to HP’s decision to split in two, separating its enterprise business from its PC and printer unit. Michael Dell has said that the deal will give his company the necessary scale not only in such current market segments-such as servers, storage and virtualization-but also in emerging spaces like big data, the converged data center, cloud and security. The deal represents the largest acquisition in tech industry history and would create a massive company that officials with both Dell and EMC hope would have the resources to challenge such vendors as IBM and Hewlett Packard Enterprise (HPE) in the competitive IT solutions and service market. Learn More.ĭell’s proposed $67 billion acquisition of storage giant EMC and its array of federated companies reportedly is hitting some hurdles, many of which are due to VMware’s sliding stock price since the proposed merger was first announced in October. We may make money when you click on links to our partners. EWEEK content and product recommendations are editorially independent.
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