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Here I thought this was a done deal. Silly me.
Despite a carefully worded ‘Dear John’ letter from Data Domain in early June, industry observers speculate EMC’s battle to win out NetApp for Data Domain is far from over. In fact, a lot has been going on behind the scenes and, given its history, EMC has the edge.
Well, it always did in my opinion. But I digress.
Pete Carey of Mercury News recently dug deep into EMC’s history to find some clues as to how this whole thing will play out. What he found was interesting - but not surprising - to say the least.
Just last year storage-device maker Iomega struck a deal to be acquired by a Chinese company for stock, then EMC jumped in with an all-cash offer to win the bid.
This time around, the EMC cash offer of $1.8 billion has been a tougher sell.
But analysts speculate that EMC could dig deeper into its pot of cash - roughly $7.2 billion worth - and boost its chances of winning this bidding war.
If that’s the case, NetApp doesn’t have a prayer.
Money, however, doesn’t always talk. Politics and culture could be at play.
EMC boss Joe Tucci has been known to lead with an iron fist.
Carey cites the EMC VMware takeover in 2004.
The virtualization software company hummed along nicely for several years, growing rapidly with no sign of stress. But then EMC began to take a stronger hand in managing it. Finally, last year, founder Diane Greene was bounced by EMC, which owns 85 percent of VMware’s stock, in a tangle with EMC boss Joe Tucci, who is also the chairman of VMware’s board. The disagreement reportedly was over VMware’s direction.
EMC may have the midas touch when it comes to revenue building. But who wants to operate under such a heavy hand?
So far, Data Domain’s board has stated it doesn’t want to have anything to do with EMC.
Well, see though.
This deal is far from shaking out anytime soon.
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Get Caught Up:
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| Around the ’sphere:
EMC Extends Offer for Data Domain | Vendors and Markets … - EMC has extended until July 10 its buyout offer for Data Domain, reports InfoWorld . EMC offered $1.9 billion in cash, but Data Domain accepted a cash-and-st. EMC Extends Data Domain Offer, ClickFuel Tanks Up with $2.5M … - Just a few deals to report from last week—perhaps New England’s tech and life sciences firms were all too busy attending XSITE? —Auriga Measurement. EMC Extends Deadline for Its Data Domain Bid - CIO.com - Business … - EMC has extended from June 29 to July 10 the deadline on its US$1.8 billion offer to purchase all outstanding shares of storage backup vendor Data Domain, in an effort to entice Data Domain to abandon a deal with NetApp. digitechmeme: Why Both EMC & NetApp Want Data Domain - The $1.5 billion offer for de-duplication leader Data Domain from NetApp, which has its own de-duplication technology, was an indicator of just how far ahead of the game Data Domain is. And now rival EMC, sensing blood, is outbidding … |
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