Rumors Confirmed: Dell Will Announce Bid to Buy EMC
Blogs from all across the news spectrum have been predicting that one of the biggest deals in technology will be announced today.
As we reported last week, rumors had been circulating concerning a possible takeover of EMC by Dell. Those rumors have been confirmed because sources such as the New York Times have published articles noting that a deal for a staggering $65B has been inked where Dell gets to acquire the business of EMC.
If you go back to Dell’s humble beginnings, you’ll find a college student named Michael Dell who was selling computing equipment out of his dorm room while he was in college. Dell certainly became a household brand and several years ago, the company decided to become publicly traded. Once Dell received Wall Street money, things started to fall apart and the business just wasn’t the same.
Founder Michael Dell eventually returned to take the company back as a private company and Dell’s refocused vision has helped the IT hardware manufacturer stay competitive within the vigorous race for data center dominance.
The New York Times reports that the deal will be officially announced this morning with Dell reaching out to its financier, Silver Lake, to help complete the deal. With Dell taking over EMC’s hardware business, Dell will be poised to take on HP in its quest for data center hardware dominance. While Dell still makes desktop computers, Dell’s focus since the return of Michael Dell has been enterprise data center hardware.
“We’re continuing to evolve the company into the most relevant areas where I.T. is moving,” Michael Dell said in a recent interview. “This deal just accelerates that.”
Dell believes that by acquiring EMC, they can become a one-stop shop for enterprises looking to outfit their new data centers. It’s an ambitious bet, but if it pays off, Dell could be poised to become the market leader in cloud data center hardware sales.
