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About that Dell and EMC Deal

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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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. 

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? 

BWIDell, EMC, Elliott Management